By Lisa Kerner
Charlotte, N.C., June 18 – NextEra Energy Resources, LLC subsidiary Genesis Solar Funding, LLC issued $280 million of 5.6% limited-recourse senior secured amortizing notes maturing in September 2038 on Friday.
Principal and interest on the notes are payable semiannually, according to an 8-K filing with the Securities and Exchange Commission.
Genesis used the proceeds primarily to reimburse affiliates for a portion of the costs associated with the construction of a solar thermal generating facility in California. Proceeds were also used to fund distributions to NextEra, which NextEra will use for general corporate purposes.
The notes are secured by liens on the equity interests in Genesis and its wholly owned subsidiary, which indirectly owns the solar project.
Project financing
Also on Friday, NextEra subsidiary Varna Wind, LP entered into, and borrowed about C$170 million under, a Canadian limited-recourse senior secured variable-rate term loan agreement.
According to the SEC filing, the loan matures 18 years from the term conversion date.
The conversion date will be determined by the completion of the construction of a wind generating facility located in Ontario, which is expected in late 2014.
Interest on the loan is based on the applicable Canadian dealer offered rate plus a margin and is payable quarterly.
Subsequent to the term conversion date, principal on the loan will be payable semiannually, the filing stated.
Varna Wind, in connection with the borrowing, entered into an interest rate swap to hedge against interest rate movements with respect to substantially all interest payments on the loan.
Most of the proceeds were used to repay, in part, a loan from a Canadian subsidiary of NextEra that indirectly owns Varna Wind related to the development and construction of the wind generating facility.
The loan is secured by liens on the wind generating facility's assets and certain other assets.
NextEra Energy Resources is an indirect wholly owned subsidiary of NextEra Energy, Inc., a Juno Beach, Fla.-based power generation and transmission company.
| Issuer: | Genesis Solar Funding, LLC
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| Issue: | Limited-recourse senior secured amortizing notes
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| Amount: | $280 million
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| Maturity: | September 2038
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| Coupon: | 5.6%
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| Settlement date: | June 13
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| Distribution: | Private placement
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| Issuer: | Varna Wind, LP
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| Facility: | Canadian limited-recourse senior secured variable-rate term loan
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| Amount: | C$170 million
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| Maturity: | 18 years
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| Coupon: | Applicable Canadian dealer offered rate plus a margin
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| Settlement date: | June 13
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