Ameresco, a company that develops and operates clean energy assets, has secured a $100 million second lien debt financing from Nuveen Energy Infrastructure Credit, with Oppenheimer & Co. acting as the Lead Arranger for the transaction.
This funding will solidify the company’s commitment to growing its business and provide a stable balance sheet on attractive terms.
“We look forward to our partnership with Ameresco and are excited to provide long-term financing to support its growing business,” said Don Dimitrievich, Portfolio Manager of Nuveen’s Energy Infrastructure Credit business. “Supporting best-in-class energy efficiency and renewable energy operators like Ameresco is fundamental to our business.”
The financing is leverage-neutral for the quarter ended June 30, 2024, as the net proceeds were used to pay off the remaining balance of the Company’s Delayed Draw Term Loan A, with the remaining funds being applied to reduce the outstanding balance on the company’s senior secured revolving credit facility.
“With the extension of the Delayed Draw Term Loan A, we began exploring potential partners for creative debt capital. The Company continues to invest in assets from its development pipeline as well as explore opportunistic acquisitions, seeking to enhance shareholder value through investment returns that exceed its cost of capital. The competitive interest rate and the long tenor of the Nuveen financing supports these efforts and solidifies a new relationship with a multi-faceted lending and investment platform that we expect to contribute to the Company’s future growth,” said Doran Hole, Chief Financial Officer at Ameresco.
According to Mercom’s Q1 2024 Solar Funding and M&A report, announced debt financing for the solar sector in Q1 2024 totaled $6.2 billion in 22 deals, a 59% increase YoY compared to Q1 2023 when $3.9 billion was raised in 17 deals.
Matrix Renewables, a global renewable energy company, and Santander Corporate & Investment Banking closed a €300 million (~$322 million) corporate debt financing deal. Matrix secured this financing as Green and Sustainability-Linked, aligning it with the Green and Sustainability-Linked Loan Principles.
