Greenbacker secures $92 million financing for storage and solar portfolio

NEW YORK, Dec. 14, 2023 (GLOBE NEWSWIRE) -- Greenbacker Capital Management (“GCM” or “Greenbacker”), a leading renewable energy asset manager, has entered, through an affiliated investment vehicle, into a $92 million financing agreement with BMO, who served as both lender and the administrative agent for the deal. Wilmington Trust served as collateral agent and depositary agent.

The financing package includes a construction to term loan, a tax equity bridge loan, a term loan commitment, and a letter of credit facility. The proceeds from the construction loan and tax equity bridge loan will be used to finance the construction of the Holtville battery energy storage system (BESS), Greenbacker’s largest standalone battery energy storage asset to date. Holtville’s 30 MW power capacity and up to 120 MWh energy storage capacity means the project will be able to power approximately 16,200 homes¹ for a six-hour period, on average. The project has a long-term contract in place with an investment-grade offtaker. The term loan will support the construction of a portfolio of community solar projects in the northeastern US. All portfolio projects are expected to enter commercial operation in 2024.

Holtville is compliant with the Equator Principles, a voluntary framework adopted by members of the financial industry, including BMO, to responsibly evaluate the environmental and social impacts of the projects they finance.

BESS projects are an essential component of the clean energy transition, particularly as demand for²—and investment in³—renewables continues to increase. They can contribute to both lower energy costs for consumers and improved resilience for the grid, as they store power that can be deployed during times of peak demand or power outage.

Community solar is helping expand access to clean energy by providing the opportunity for residential and commercial subscribers to utilize solar power without the cost and logistics of installing their own rooftop arrays. Subscribers can also lower their power bills by receiving credits for the energy generated by their share of the community solar project.

Greenbacker was advised on the deal by the Stoel Rives law firm. Paul Hastings LLP served as legal advisor to BMO. Wilmington Trust was advised by Bryan Cave Leighton Paisner law firm.

About Greenbacker Capital Management
Greenbacker Capital Management LLC is an SEC registered investment adviser that provides advisory and oversight services related to project development, acquisition, and operations in the renewable energy, energy efficiency, and sustainability industries. For more information, please visit https://greenbackercapital.com.

About BMO Financial Group
BMO Financial Group is the eighth largest bank in North America by assets, with total assets of $1.3 trillion as of October 31, 2023. Serving customers for 200 years and counting, BMO is a diverse team of highly engaged employees providing a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services to 13 million customers across Canada, the United States, and in select markets globally. Driven by a single purpose, to Boldly Grow the Good in business and life, BMO is committed to driving positive change in the world, and making progress for a thriving economy, sustainable future, and inclusive society.

About Wilmington Trust
Wilmington Trust, N.A. provides Corporate and Institutional Services including institutional trust, agency, asset management, retirement plan, agency, asset management, and administrative services for clients worldwide who use capital markets financing structures. Wilmington Trust provides direct trust, custody, and fiduciary services for retirement plans, companies, foundations, organizations and financial institutions. Wilmington Trust also provides Wealth Advisory services with a wide array of personal trust, financial planning, fiduciary, asset management, and family office solutions designed to help high-net-worth individuals and families grow, preserve, and transfer wealth. Wilmington Trust maintains offices throughout the United States and internationally in London, Paris, Dublin, and Frankfurt. For more information, visit www.WilmingtonTrust.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. Although Greenbacker believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. Greenbacker undertakes no obligation to update any forward-looking statement contained herein to conform to actual results or changes in its expectations.

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_{¹ Frequently Asked Questions (FAQs) - U.S. Energy Information Administration, US Energy Information Administration.
² International Energy Outlook 2023 - U.S. Energy Information Administration, US Energy Information Administration.
³ Renewable Energy Investment Hits Record-Breaking $358 Billion in 1H 2023, BloombergNEF, Meredith Annex, August 21, 2023.}