Altus Power has closed a secured credit facility including a US$100m principal loan with an affiliate of Goldman Sachs Asset Management and CPPIB Credit Investments III, a subsidiary of Canada Pension Plan Investment Board (CPP Investments).
The solar developer plans to use proceeds from the facility to support its ongoing expansion.
The facility carries an interest rate of 8.50% and a term of six years and is prepayable without penalty after three years.
Dustin Weber, chief financial officer at Altus Power, said: “We’re pleased to welcome Goldman Sachs and CPP Investments as partners in Altus Power, bringing capital that will fund our expected growth plans in 2024.
“This financing capitalizes on our growing cash flow generation, which has been a defining feature of our business model.”
Gregg Felton, co-founder and co-chief executive of Altus Power, added: “Our pipeline includes an attractive flow of operating and development assets and, with this efficient financing, we’re well positioned to execute on these opportunities.
“We believe this new facility positions us to increase our market share while providing our counterparties with execution certainty and our shareholders with continued profitable growth.”