Hecate Energy Secures a $550 Million Credit Facility Package, Including Five-Year Term Loan and LC Facility
Innovative financing supports advancement of Hecate’s ~35 GW U.S. renewables pipeline and targeted monetization of ~5 GW per year
CHICAGO – Jan. 24, 2023 — Hecate Energy, a leading developer of renewable power projects and energy storage solutions in the United States, today announced the recent close of a five-year $550 million credit facility package, inclusive of a $250 million term loan and $300 million Letter of Credit (“LC”) facility to support further expansion of its solar and energy storage project pipeline. The new credit facilities will be collateralized by Hecate Energy’s ~35 GW pipeline of renewables development projects, along with its minority ownership interests in Hecate Grid.
PEI Global Partners served as Hecate’s exclusive financial advisor on this innovative and first of its kind financing and Winston & Strawn acted as borrower’s counsel. Investec Inc., and Nomura Securities International led the financing and along with National Bank of Canada, and Deutsche Bank served as initial Coordinating Lead Arrangers and Syndication Agents, with Generate Capital acting as a Coordinating Lead Arranger and Documentation Agent for the transaction. Ten lenders participated in the primary syndication and Norton Rose Fulbright acted as lenders’ counsel.
An acknowledgment of Hecate’s scale and success as a pure play renewables development company in North America, this groundbreaking development credit facility in the commercial bank market was collateralized by its renewables development projects and without a guarantee or other credit support. The proceeds from the term loan refinanced an existing loan facility, at a meaningfully lower cost to Hecate, and the LC facility enables Hecate to issue numerous grid interconnection and PPA LCs enabling it to achieve sales of 5 GW or more annually.
“Support from these leading international financial institutions validates Hecate’s approach to renewables development and will accelerate our drive to deploy significantly more efficient, and cost-effective renewable energy and storage solutions across the United States,” said Chris Bullinger, CEO of Hecate Energy. “We are deeply appreciative of our banking partners who share our vision of a sustainable clean energy future.”
“Investec is delighted to have closed this successful financing for Hecate,” said Fred Petit, Co-Head of Investec’s North American Power & Infrastructure Coverage. “We worked with the company to identify a syndicate of lenders that could deliver on a well-structured transaction to support one of the largest pipelines of solar and energy storage assets in the U.S. This financing demonstrates Investec’s continued commitment to the energy transition sector, our strong distribution capabilities, and ability to meet our clients’ objectives.
Vinod Mukani, Global Head of Nomura’s Infrastructure and Power Business (“IPB”), commented, “We are leveraging our global financial and intellectual capital to provide funding and tailored financing solutions to companies like Hecate Energy, who are helping to fuel the energy transition, and this a core focus for Nomura. Executing on this transaction is particularly exciting as Hecate Energy retains an experienced and talented team and an attractive business strategy which we are happy to support.”
“Nomura is very excited to provide liquidity to support Hecate’s renewable energy pipeline in the US. Hecate is a leading independent developer and we are extremely pleased to support them with creative financing solutions to support their business and goals,” said Alain Halimi, an Executive Director of Nomura’s IPB.
About Hecate Energy
Headquartered in Chicago, Hecate Energy is a top-ten developer of solar and wind generation facilities and energy storage solutions in North America. Founded in 2012 by a team of energy industry veterans with 20 years of collaboration, Hecate Energy is one of the largest stand-alone renewable energy developers in the United States today. Currently, the company has a pipeline of over 35 GW, with over 125 projects across 10 power markets in North America. Over the last eight years, Hecate Energy has executed more than 36 power project transactions, totaling more than 6,500 MW of capacity.
PEI Global Partners Holdings LLC (“PEI”) is an independent, closely held investment bank specializing in the power, energy and infrastructure sectors, with offices in New York City and Tampa. PEI advises financial sponsors, developers and corporate clients on mergers and acquisitions, divestitures, financings, private placements and other strategic transactions. In 2022, PEI closed twelve transactions and raised over $4 billion for owners and developers of renewable and thermal power. PEI conducts securities transactions through its wholly-owned broker-dealer subsidiary PEI Global Partners LLC, which is regulated by the Financial Industry Regulatory Authority (“FINRA”), the Securities and Exchange Commission (“SEC”), the New York State Department of Financial Services and the Florida Office of Financial Regulation. For more information on PEI, please visit www.peigp.com.
Investec Power and Infrastructure Finance is part of a strong global franchise, with teams across the US, UK, Europe, South Africa and India. Investec partners with private, institutional, and corporate clients, offering international banking, investments, and wealth management services in two principal markets, South Africa, and the UK, as well as certain other countries. The Group was established in 1974 and currently has 8,300+ employees. Investec has a dual listed company structure with primary listings on the London and Johannesburg Stock Exchanges.
Nomura is a global financial services group with an integrated network spanning over 30 countries and regions. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its three business divisions: Retail, Investment Management, and Wholesale (Global Markets and Investment Banking). Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions and considered thought leadership. For further information about Nomura, visit www.nomura.com.
Steven C. Sullivan