Spruce Power launches $600 million term loan at SOFR plus 375-400 bps

By Sara Rosenberg

New York, Jan. 26 – Spruce Power Holdings LLC launched on Wednesday its $600 million seven-year term loan B (B) with price talk of SOFR+CSA plus 375 basis points to 400 bps with a 0.5% floor and an original issue discount of 99, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan has 101 soft call protection for six months and a debt service coverage ratio covenant.

KeyBanc Capital Markets is the lead on the deal.

Commitments are due at 5 p.m. ET on Feb. 9, the source added.

Proceeds will be used to refinance existing debt, and any remaining proceeds will fund a distribution to HPS Investment Partners.

Spruce Power is a Houston-based owner and operator of distributed generation solar residential assets.

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