Summit Ridge Energy has closed a $305 million senior secured credit facility with Bank of America to support a portfolio of community solar projects in Illinois and Maryland. The portfolio will total 158 megawatts (MW) of capacity. HASI, an investor in sustainable infrastructure assets, participated alongside Summit Ridge Energy.
The financing consists of a $281 million term loan and a $24 million letter of credit facility. According to Summit Ridge Energy, the funding will be used for term financing across the portfolio. The company expects the projects to provide energy savings to approximately 5,000 households and businesses, generate local tax revenue, and create about 3,000 jobs related to construction, engineering, and operations.
Bank of America served as Structuring Agent, Syndication Agent, Coordinating Lead Arranger, Administrative Agent, Hedge Provider, and LC Fronting Bank for the transaction. ING Capital was Green Loan Structuring Agent and Coordinating Lead Arranger; KeyBanc Capital Markets also acted as Coordinating Lead Arranger.
“This financing marks another significant milestone for Summit Ridge,” said Adam Kuehne, Chief Investment Officer at Summit Ridge Energy. “Expanding our partnership with Bank of America enables us to grow our footprint in Illinois and Maryland, providing cost savings for thousands of customers while advancing America’s energy independence with U.S.-made components and local labor.”
“We are pleased to collaborate with Summit Ridge on this energy portfolio,” said Omer Farooq, Head of Asset Finance within the Global Sustainable & Infrastructure Finance Group at Bank of America.“Our support for distributed energy projects underscores our ability to advance energy solutions that also contribute to local economic development.”
The new solar projects are expected to deliver long-term savings for users while creating jobs across both states. They are also intended to strengthen local power grids by adding distributed energy resources.
With this addition, Summit Ridge Energy now has more than 2 gigawatts (GW) worth of solar projects either operating or under development nationwide.
Since its launch in 2017, Summit Ridge Energy has raised over $5 billion in project capital used to finance more than 200 solar facilities. These efforts have delivered energy savings for over 42,000 homes and businesses throughout the United States.
