Nautilus Solar Energy Closes $202 Million Institutional Debt Private Placement

Nautilus Solar Energy, a community solar project developer, completed the issuance of $202 million in senior secured notes to institutional investors in a private placement transaction. The financing is to secure an investment-grade rating for a 186 MW portfolio comprised mainly of community solar assets and diversified across 58 projects operating in 7 states.

National Bank Financial and RBC Capital Markets acted as advisors and joint lead placement agents for Nautilus on the private placement transaction.

“With the successful closing of this private placement transaction, we are even more well-positioned to continue to grow our community solar business throughout the country,” said Jeffery Cheng, CEO of Nautilus Solar Energy.

Greenberg Traurig, LLP acted as legal counsel for Nautilus, and Winston & Strawn LLP acted as legal counsel for the investors.

Nautilus provides clean energy solutions for residential and commercial customers in local communities. The company operates and manages solar projects in 10 states and is responsible for financing, development, maintenance, and customer service for the project’s lifetime.

Camelia Miu, CFO at Nautilus Solar Energy, reflected on the transaction, saying, “Completing this deal truly required the collaborative effort of the entire company. The fact that institutional investors are investing with us for the long term is a significant vote of confidence and validation of Nautilus’ approach to focus on community solar.”

In August, the company acquired a 28.7 MW portfolio of six community solar projects in Delaware from TurningPoint Energy (TPE). The projects, located in Kent, New Castle, and Sussex Counties, are in the late stages of development and are expected to start construction in 2024.

According to Mercom’s 1H and Q2 2023 Solar Funding and M&A Report, in the first half (1H) of 2023, total corporate funding, including venture capital (VC) funding, public market, and debt financing, in 1H 2023 totaled $18.5 billion, 54% higher year-over-year (YoY) compared to $12 billion raised in 1H 2022. The number of deals decreased by 12% YoY, with 80 deals in 1H 2023 compared to 91 during the same period last year.