Renewables outfit sPower has closed a $421.4m bond to refinance existing assets and fund the development of new assets.

The company said the private placement financing covers a portfolio of approximately 565MW of utility-scale solar and wind assets, which represents approximately 44% of sPower’s 1.3GW operating portfolio. 

The proceeds refinanced approximately $300m of medium-term bank loans, lengthening tenor to a fully-amortizing 19-year facility and removing refinancing risks associated with previous bank loans.

The remainder of the finance will be used to fund sPower’s development of additional renewables facilities.

SPower said the offering was significantly oversubscribed by a mixed group of US private investors.

SPower chief executive Ryan Creamer said: “This first-of-its-kind milestone is a testament to the quality of our operating portfolio, the relationships we have with our finance partners and the strength of our utility offtakers. 

“This financing will benefit sPower for years to come by locking in predictable cash flows for almost two more decades.

Citi was ratings advisor, structuring agent and lead placement agent, while Credit Agricole, KeyBanc, Rabo, Societe Generale and Wells Fargo served as co-placement agents and CohnReznick financial advisor.

Image: sPower