Narrative
Full Description
Project narrative
On December 13, 2016, financial close was reached on a deal in which a syndicate of 11 banks — including the Industrial and Commercial Bank of China (ICBC) — entered into a $435.10 million USD syndicated loan agreement with SBL Holdco, LLC — a Virginia-incorporated special purpose vehicle (SPV), variable interest entity, and a wholly-owned subsidiary of Dominion Generation, Inc. (DGI), a Virginia corporation and wholly-owned subsidiary of Dominion Energy, Inc. (formerly known as Dominion Resources, Inc.), an American energy and electric utility company headquartered in Richmond, Virginia and listed on the New York Stock Exchange — for the 423 MW Dominion US Solar Portfolio Project. This loan was divided into two tranches: a $404.85 million USD term loan tranche carried a maturity period of seven years, a final maturity date of December 13, 2023, and an interest rate of LIBOR plus a margin of 225 basis points (bps); and a $30.20 million USD letter of credit tranche with a maturity period of one year with a final maturity date of December 2017, albeit with automatic one-year renewals until the maturity of the term loan tranche. This loan was secured by (i.e. collateralized against) SBL Holdco's interest in certain merchant solar facilities. ICBC contributed $38.50 million USD to the $404.85 million USD term loan tranche. In addition to ICBC, the following lenders contributed the respective amounts to the tranche: Commerzbank AG ($37.50 million USD), KEB Hana Bank ($27.50 million USD), KeyBank, National Association ($29.09 million USD), the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) ($38.50 million USD), Mizuho Bank ($38.50 million USD), PNC Bank ($37.50 million USD), Siemens Financial Services GmbH (SFS) ($27.50 million USD), Sumitomo Mitsui Banking Corporation (SMBC) ($37.50 million USD), SunTrust Robinson Humphrey Inc. (STRH) ($37.50 million USD), and Wells Fargo Bank ($17.77 million USD). All 11 lenders, including ICBC, contributed $2.75 million USD to the $30.2 million USD letter of credit tranche; AidData does not consider letters of credits to be flows. KeyBank led the loan syndicate. KeyBank was the left lead arranger on the loan. BTMU, STRH, PNC, Mizuho, Commerzbank, Wells Fargo, and Hana served as lead arrangers. The proceeds were to be used by the borrower, which held Dominion Energy's 67% controlling interest in certain solar projects, for general corporate purposes related to its 423 MW (ac) portfolio of 24 operating utility-scale solar assets located across the United States owned by Dominion. The portfolio included the 50 MW Pavant Solar Farm in Millard County, Utah; the 20 MW Richland Solar Center in Twiggs County, Georgia; the 7.7 MW Azalea Solar Power Facility in Washington County, Georgia; the 20 MW Alamo Solar Farm in San Bernardino County, California; the 20 MW Maricopa West Solar Project in Kern County, California; the 15 MW RE Columbia 2 Solar Farm in Kern County, California; the 18 MW Catalina II Solar Project in Kern County, California; the 45 MW RE Camelot Solar Farm in Kern County, California; the 20 MW RE Old River One Solar Photovoltaic Park in Kern County, California; the 20 MW CID Solar Photovoltaic Farm in Kings County, California; the 20 MW RE Kent South Solar Photovoltaic Park in Kings County, California; the 20 MW RE Kansas Solar South Solar Generating Facility in Kings County, California; the 12 MW Cottonwood Corcoran Solar Photovoltaic Park in Kings County, California; the 20 MW T.A. Acacia West Antelope Solar Farm in Los Angeles County, California; the 20 MW West Antelope Solar Park in Los Angeles County, California; the 20 MW Imperial Valley Solar Company 2 (Niland II; Imperial Valley Beal) solar farm in Imperial County, California; the 19 MW RE Adams East Solar Farm in Fresno County, California; the 15.8 MW Mulberry Solar Farm in McNairy County, Tennessee; the 28.6 MW Indy Solar I, II and III Solar Projects in Marion County, Indiana; and the 24.6 MW Selmer I & II Solar Projects in McNairy County, Tennessee; and the 5 MW Somers Solar Power Facility in Tolland County, Connecticut. In December 2021, Dominion Energy sold SBL Holdco to Terra Nova Renewables Partners for $209 million USD, with Terra Nova assuming $265 million USD of long-term debt. At the same time, SBL Holdco terminated the $30.2 million USD letter of credit tranche.
Staff comments
1. A 6-month LIBOR rate was assumed. The average 6-month LIBOR rate for December 2016 was 1.30633%. Therefore, the interest rate has been coded as 1.30633% + 2.25% (225 bps) = 3.55633%.