China Development Bank provides a $3.6 million USD loan for the Engineering, Procurement, and Construction (EPC) Financing for the 4.88 MW White Rose Solar Power Project (Linked to Record ID#105484 and #105570)

Project narrative

On December 30, 2011, the Jiangxi Branch of China Development Bank Corporation (CDB) entered into a $3,600,000 USD and a RMB 72,150,000 facility agreement with SPI Solar New Jersey, Inc. — a New Jersey-incorporated special purpose vehicle (SPV) and wholly-owned subsidiary of Solar Power, Inc. (SPI), a California-incorporated U.S. solar power company listed on the Main Board of the New York Stock Exchange (NYSE) and majority-owned by Cayman Islands-incorporated LDK Solar Co., Ltd., a Jiangxi, China-based manufacturer of photovoltaic solar panels used in the project also listed on the NYSE — for the Engineering, Procurement, and Construction (EPC) Financing for the White Rose Solar Power Project. This facility carried a drawdown period of 12 months, a maturity period of 24 months (two years) from first utilization, a variable interest rate of LIBOR plus a margin of 5.10% for the $3.6 million USD portion and "the standard RMB interest rate" for the RMB 72.15 million portion, a repayment schedule with interest payable every six months. Record ID#105483 captures the $3.6 million USD facility. Record ID#105484 captures the RMB 72.15 million facility. This loan was secured by (i.e. collateralized against) an assignment of right, title, and interest to the collection accounts (account numbers #12020290 and 12020281), the EPC contracts, all supporting obligations, and proceeds and products, as pledged by Solar Power, Inc. per a security agreement dated December 30, 2011 governed by the State of New York. SPI New Jersey was obligated to pay front-end fee of 1.5% of the total amount of the U.S. dollars portion of the facility agreement ($54,000 USD) upon the first drawing under the dollars portion and obligated to pay front-end fee of 1.5% of the total amount of the RMB portion of the facility agreement (RMB 1,082,250) upon the first drawing under the RMB portion. SPI New Jersey was also obligated to pay a fee equal to 0.5% per annum of the available but undrawn funds. The facility could be prepaid in whole or in part, though repaid portions could not be re-borrowed. All amounts outstanding would become payable on the occurrence of certain events, including a change of control at SPI New Jersey. The facility held standard events of default and certain events relating to the underlying White Rose Solar Power Project. The loan carried a negative pledge for SPI's ability to create security over or dispose of receivables and other things. On March 8, 2012, the Jiangxi Branch of CDB entered into a $15,000,000 USD term loan facility agreement with KDC Solar Credit LS LLC — a New Jersey-incorporated affiliate of KDC Solar LLC, a Delaware-incorporated privately owned, developer, builder, and owner of solar projects headquartered in Bedminster, New Jersey — for the 4.88 MW White Rose Solar Power Project. Record ID#105570 captures this loan. The proceeds were used by the borrower to fund the construction cost of the EPC contract dated November 18, 2010 between SPI as contractor and 380 Middlesex Solar LLC — a Delaware-incorporated SPV and project company — as owner for the electricity grid-connected photovoltaic, solar power generation facilities with a specified installed capacity of approximately 4.88 MW known as the White Rose Solar Project located at 380 Middlesex Avenue, Carteret, New Jersey. The solar project was located on the roof at the then-White Rose Inc. warehouse in Carteret, with the system supplying over 60% of the warehouse's electricity needs via the generation of approximately 6.2 million hours of electricity annually and reduce the warehouse's carbon footprint. KTR Capital Partners owned the warehouse. KDC Solar Nugen WR — a joint venture between KDC Solar LLC and Nugen Capital Management LLC — was the owner and operator of the system. SPI was responsible for EPC services; it procured 22,000 panels from LDK Solar for the project. Construction was underway by June 2011. The project was officially completed in a ceremony dated January 25, 2012.