US independent power producer (IPP) MN8 Energy has raised US$300 million to extend a corporate credit facility that it said will help to build out its pipeline of US solar PV and energy storage projects.
The credit facility now sits at US$650 million, up from its initial US$350 million commitment, and its maturity date has been extended from Q1 2028 to Q3 2030. The facility was led by US banks JP Morgan and Wells Fargo, with Bank of America, Societe Generale, MUFG and Crédit Agricole CIB also involved.
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The credit comprises up to US$550 million of revolving borrowing capacity and US$100 million of new capacity for letters of credit “to support development-stage requirements such as power purchase agreement and interconnection security deposits.”
“Nearly doubling the size of our corporate credit facility while extending its tenor—and doing so with broad participation from a top-tier group of financial institutions—gives us the capital flexibility, liquidity and credit support we need to continue executing on one of the most active development pipelines in the country and to deliver reliable, long-term power to America’s largest enterprise customers,” said David Callen, chief financial officer of MN8 Energy.
MN8 Energy is a spin-out of Goldman Sachs Renewable Power, the energy subsidiary of US banking giant Goldman Sachs. Over the last year it has raised significant capital for US renewable energy expansions; notably a US$612 million investment from Natixis Corporate & Investment Banking (Natixis CIB) to develop three solar projects in North Carolina, Kentucky and Illinois. In July last year, it secured over US$500 million to refinance debt for a portion of its solar portfolio.
To date, the company has around 4GW of operational and under-construction solar project capacity and 1.1GWh of energy storage capacity, split across over 874 projects across 29 states.
