Hecate Energy, a leading developer of renewable power projects and energy storage solutions in the United States, today announced the recent close of a five-year $550 million credit facility package, inclusive of a $250 million term loan and $300 million Letter of Credit (“LC”) facility to support further expansion of its solar and energy storage project pipeline. The new credit facilities will be collateralized by Hecate Energy’s ~35 GW pipeline of renewables development projects, along with its minority ownership interests in Hecate Grid.
PEI Global Partners served as Hecate’s exclusive financial advisor on this innovative and first of its kind financing and Winston & Strawn acted as borrower’s counsel. Investec Inc., and Nomura Securities International led the financing and along with National Bank of Canada, and Deutsche Bank served as initial Coordinating Lead Arrangers and Syndication Agents, with Generate Capital acting as a Coordinating Lead Arranger and Documentation Agent for the transaction. Ten lenders participated in the primary syndication and Norton Rose Fulbright acted as lenders’ counsel.
An acknowledgment of Hecate’s scale and success as a pure play renewables development company in North America, this groundbreaking development credit facility in the commercial bank market was collateralized by its renewables development projects and without a guarantee or other credit support. The proceeds from the term loan refinanced an existing loan facility, at a meaningfully lower cost to Hecate, and the LC facility enables Hecate to issue numerous grid interconnection and PPA LCs enabling it to achieve sales of 5 GW or more annually.
“Support from these leading international financial institutions validates Hecate’s approach to renewables development and will accelerate our drive to deploy significantly more efficient, and cost-effective renewable energy and storage solutions across the United States,” said Chris Bullinger, CEO of Hecate Energy. “We are deeply appreciative of our banking partners who share our vision of a sustainable clean energy future.”
“Investec is delighted to have closed this successful financing for Hecate,” said Fred Petit, Co-Head of Investec’s North American Power & Infrastructure Coverage. “We worked with the company to identify a syndicate of lenders that could deliver on a well-structured transaction to support one of the largest pipelines of solar and energy storage assets in the U.S. This financing demonstrates Investec’s continued commitment to the energy transition sector, our strong distribution capabilities, and ability to meet our clients’ objectives.
Vinod Mukani, Global Head of Nomura’s Infrastructure and Power Business (“IPB”), commented, “We are leveraging our global financial and intellectual capital to provide funding and tailored financing solutions to companies like Hecate Energy, who are helping to fuel the energy transition, and this a core focus for Nomura. Executing on this transaction is particularly exciting as Hecate Energy retains an experienced and talented team and an attractive business strategy which we are happy to support.”
“Nomura is very excited to provide liquidity to support Hecate’s renewable energy pipeline in the US. Hecate is a leading independent developer and we are extremely pleased to support them with creative financing solutions to support their business and goals,” said Alain Halimi, an Executive Director of Nomura’s IPB.