Summit Ridge Energy has secured a $305 million senior secured credit facility from Bank of America to finance a portfolio of community solar projects in Illinois and Maryland. The portfolio will total 158 megawatts (MW) of capacity. HASI, an investor in sustainable infrastructure assets, participated alongside Summit Ridge Energy in raising the facility.
The financing package consists of a $281 million term loan and a $24 million letter of credit facility. According to Summit Ridge Energy, the funds will support projects that are expected to provide energy savings for 5,000 households and businesses. The initiative is also projected to generate local tax revenue and create 3,000 jobs in construction, engineering, and long-term operations.
Bank of America took on several roles in the transaction, including Structuring Agent, Syndication Agent, Coordinating Lead Arranger, Administrative Agent, Hedge Provider, and LC Fronting Bank. ING Capital served as Green Loan Structuring Agent and Coordinating Lead Arranger; KeyBanc Capital Markets was also named as Coordinating Lead Arranger.
"This financing marks another significant milestone for Summit Ridge," said Adam Kuehne, Chief Investment Officer at Summit Ridge Energy. "Expanding our partnership with Bank of America enables us to grow our footprint in Illinois and Maryland, providing cost savings for thousands of customers while advancing America’s energy independence with U.S.-made components and local labor."
“We are pleased to collaborate with Summit Ridge on this energy portfolio,” said Omer Farooq, Head of Asset Finance within the Global Sustainable & Infrastructure Finance Group at Bank of America.“Our support for distributed energy projects underscores our ability to advance energy solutions that also contribute to local economic development.”
The company states that its new portfolio will deliver long-term energy savings for thousands of customers while creating thousands of jobs across Illinois and Maryland. Additionally, it aims to strengthen local power grids by using distributed solar generation.
Summit Ridge Energy reports that it now has more than 2 gigawatts (GW) worth of solar projects either operating or under development nationwide. Since its founding in 2017, the company says it has raised over $5 billion in project capital used to finance more than 200 solar facilities across the country.
For further information about Summit Ridge Energy’s activities or business inquiries visit their website at srenergy.com.