January 26, 2023: Hecate Energy, a US developer of renewable power and energy storage projects announced on January 24 the recent closure of a five-year $550 million financing to support further expansion of its solar and energy storage project pipeline.
“This innovative financing supports advancement of Hecate’s 35GW US renewables pipeline and targeted monetization of 5GW per year,” said a Hecate statement.
“The size of the loan and the fact that is for five years is a show of confidence in both Hecate and also the broader market that it operates in,” one commentator told BESB. “A deal of this size and maturity a few years ago would have been unthinkable.”
A Hecate spokesperson said: “The new credit facilities will be collateralized by Hecate Energy’s 35GW pipeline of renewables development projects, along with its minority ownership interests in Hecate Grid.
“This is an acknowledgment of Hecate’s scale and success as a pure play renewables development company in North America, this ground-breaking facility in the commercial bank market was collateralized by its renewables development projects and without a guarantee or other credit support.
“The $250 million proceeds from the term loan refinanced an existing loan facility, at a meaningfully lower cost to Hecate, and the $300 million letter of credit facility enables Hecate to issue numerous grid interconnection and PPA [power purchase agreements] LCs enabling it to achieve sales of 5GW or more annually.”
Hecate Energy was founded in 2012 and has over 125 projects across 10 power markets in North America. Over the last eight years, Hecate Energy says it has executed more than 36 power project transactions, totalling more than 6,500MW of capacity.