Clearway Energy units get $335 million 364-day bridge loan, tweak revolving facility

By Wendy Van Sickle

Columbus, Ohio, Dec. 1 – Some subsidiaries of Clearway Energy, Inc. obtained a $335 million bridge loan facility for an upcoming acquisition while other subsidiaries amended their $495 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

Bridge loan

Clearway Operating LLC as borrower and Clearway LLC as guarantor entered an agreement with Bank of America, NA as administrative agent to provide for the 364-day $335 million term loan, which will bear interest SOFR plus 100 basis points for the first six months and SOFR plus 125 bps thereafter.

The loan was used to consummate on Wednesday the previously disclosed transaction under which the borrower’s Utah Solar Holdings II LLC subsidiary acquired from Dominion Solar Projects III, Inc. 100% of the class B membership interests in project companies comprising 50% of the membership interests in a portfolio consisting of seven utility-scale solar farms located in Utah representing 530 megawatts of capacity for $335 million in cash. Utah Solar Holdings II now owns 100% of the membership interests in the solar portfolio.

Revolver amendment

Clearway Energy Operating LLC as borrower and Clearway Energy LLC as guarantor amended, effective Nov. 30, the revolver with JPMorgan Chase Bank, NA as administrative agent.

The sixth amendment to the credit agreement increases the maximum permitted borrower leverage ratio to 6x, subject to increase to 6.5x under certain conditions, from the effective date that is the earliest of two business days following the consummation of the disposition contemplated by the previously announced membership interest purchase agreement dated Oct. 22 between Clearway Operating LLC and KKR Thor Bidco, LLC, the 120th day following the termination or expiration of that agreement and the maturity date of the bridge loan agreement.

The amendment also permits the incurrence of the bridge facility; permits the incurrence of hedging obligations and provides for a $40 million basket for cash collateral which may be provided to secure hedging obligations; permits the prepayment of unsecured, junior or subordinated debt at any time following the leverage period termination date, subject to conditions, including that, after giving effect to such payment, the leverage ratio would not be greater than 5.5x and the borrower interest coverage ratio would not be less than 1.75x.

Princeton, N.J.-based Clearway invests in energy infrastructure, and its portfolio includes wind, solar and natural gas-fired power generation facilities.

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