Foresight Solar has completed a £245m debt refinancing covering a UK PV portfolio totalling 321MW.
The financing comprises a £170m term loan facility, £65m of revolving credit and £10m of debt service reserve.
All loans will expire in March 2036 and were provided jointly by Landesbank Hessen-Thüringen Girozentrale and Sumitomo Mitsui Banking Corporation.
Proceeds will be used “partially to refinance the asset-level debt facilities expiring in September 2019”, said the company.
Following this transaction, which covers 28 UK solar projects, the company’s total outstanding debt is £511.3m.
Foresight Solar Fund chairman Alex Ohlsson said: “This refinancing delivers significant value for Foresight Solar Fund as a result of a reduction in the annual cost of the new cross-collateralised term loan facility against the previous asset level facilities.
“In addition, the refinancing of the RCF removes any short-term refinancing risk across the Company’s portfolio and allows the Company to adopt a more flexible approach to new investment opportunities in both the short and medium term.”
He added: “This transaction is testament to the innovative work of the investment manager, our advisers, and the continued support of the lending market.”