Scatec Solar plans new debt financing for SN Power purchase

By Sara Rosenberg

New York, Oct. 16 – Scatec Solar plans on getting new debt financing to help fund its acquisition of SN Power from Norfund for a total equity value of $1.166 billion, according to a company presentation.

The financing is split between a $150 million four-year term loan provided by Nordea, DNB and Swedbank;, $700 million in acquisition financing[CV1] available until 12 months after the transaction closes from Nordea, DNB, BNP Paribas and Swedbank that is expected to be refinanced through debt and equity;, and a $200 million subordinated seven-year vendor financing provided by Norfund.

The average margin on the transaction financing is expected to be 250 basis points.

Other funds for the transaction will come from cash on hand.

Scatec Solar intends to get a $180 million revolver to replace its existing $90 million revolver.

Closing is expected in the first half of 2021, subject to regulatory approvals and local competition approvals.

Scatec Solar is an Oslo, Norway-based renewable power producer. SN Power is a hydropower developer.

[CV1]Is it possible to have “an acquisition financing”?

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