Blackstone lends US$200 million construction finance for US commercial PV developer Altus

Facebook
Twitter
LinkedIn
Reddit
Email
Altus Power specialises in C&I, community and public sector PV projects like the one shown. Image: Businesswire.

Global alternative asset manager Blackstone is lending US$200 million towards the construction of new solar PV projects in the US by Altus Power.

The construction finance deal was announced yesterday (13 November) by Altus Power, which is specialised in commercial market segment solar PV development, including commercial and industrial (C&I), community-scale solar as well as electric vehicle (EV) charging solutions and battery storage.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

On the same day, Altus released its third quarter financial results, in which it reported Q3 2023 revenues of US$45.1 million, up 22% from the same period in the previous year, adjusted EBITDA of US$29.1 million – a 50% increase from Q3 2022 – and reaffirmed guidance for adjusted EBITDA for the full year to be in the range of US$97 million to US$103 million, and adjusted EBITDA margin “in the mid-to-high 50% range”.

The Blackstone Construction Facility will be put towards construction of commercial solar assets, with the money to be used for expenses like labour, equipment, grid interconnection and development fees.

It marks an ongoing relationship between the two companies, with Blackstone, through its Blackstone Structure Finance group launched in 2021 having backed Altus Power’s development activities with a similar amount of funding towards 220MW of community solar PV projects towards the beginning of this year, as reported by PV Tech.

That followed a raise of another US$200 million in late 2022 to support the company’s growth, with joint bookrunners and lenders Citibank, Bank of America, JPMorgan Chase Bank, KeyBank National Association and Truist Securities.

Altus Power CFO Dustin Webber said the additional line of capital was secured with Blackstone despite challenging economic circumstances at a macro level, or as Webber put it, “in an environment where bank lending and conventional construction facilities are extremely limited”.

“This new facility provides a significant advantage as we look to optimise our working capital to support our targeted expansion in 2024 and beyond.”

Blackstone Structured Finance global head of asset-based finance Robert Camacho remarked that the construction facility was launched on behalf of the fund’s insurance clients. Those clients, Camacho said, “have significant capacity for the high quality long-duration investments that Altus is originating”.

Altus Power, headquartered in Connecticut, develops, owns and operates the assets it works on, providing end-to-end solutions for both private and public sector customers. The company’s portfolio of operational assets reach approximately 721MW by the end of Q3, according to its recent financial release.

Read Next

June 13, 2024
PV Tech's coverage of the SNEC PV Power expo 2024. We are reporting live from the exhibition floor at the world's biggest PV trade show.
June 7, 2024
Community solar has expanded access to solar adoption to communities struggling to adopt rooftop PV, according to research from the Lawrence Berkeley Lab (LBL) and the National Renewable Energy Lab (NREL).
June 3, 2024
The REC Group has launched a new series of modules which uses heterojunction (HJT) cell technology and boasts a conversion efficiency of 22.5%
May 30, 2024
Maxeon Solar Technologies posted net losses of US$14.87 million in its Q1 2024 financial results. It also announced that its future utility-scale solar business will be “focused exclusively on the US”.
Premium
May 24, 2024
Quarterly reports from China’s big-five PV module producers highlight the challenges PV manufacturers face in maintaining profitability.
May 24, 2024
US independent power producer Pivot Energy and electric vehicle (EV) manufacturer Rivian have partnered to build 60MW of community solar in Illinois, US.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 2, 2024
Athens, Greece
Solar Media Events
July 9, 2024
Sands Expo and Convention Centre, Singapore
Solar Media Events
September 24, 2024
Warsaw, Poland
Solar Media Events
September 24, 2024
Singapore, Asia