Greenbacker Renewable details $150 million sustainability revolver

By William Gullotti

Buffalo, N.Y., Dec. 1 – Greenbacker Renewable Energy Co. LLC further detailed its new $150 million senior secured sustainability revolving credit facility with Fifth Third Bank, NA as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The agreement was entered on Nov. 29 by GREC Holdings 1 LLC, an indirect wholly owned subsidiary of Greenbacker. The revolver is guaranteed by Greenbacker Renewable Energy Corp., a wholly owned direct subsidiary of Greenbacker.

As previously reported, the revolver replaces a $40 million letter-of-credit facility and marks the company’s first financing structured as a sustainability loan. It will mature Nov. 29, 2027.

Borrowings will bear interest at SOFR plus a margin ranging from 175 basis points to 200 bps, dependent on GREC’s total leverage ratio. There is also a 50 bps facility fee on the unused portion of the revolver.

GREC must maintain a total leverage ratio not to exceed 5.5 to 1.0 and an interest coverage ratio that is less than 1.75 to 1.0.

As previously reported, the company will use borrowings from the credit facility for investments that include renewable energy generation, battery storage, energy efficiency, resource stewardship and community solar projects serving under-resourced communities.

Fifth Third Bank, KeyBanc Capital Markets Inc. and Wells Fargo Bank, NA are the joint lead arrangers. Wells Fargo is also the sustainability structuring agent.

Greenbacker is a New York-based climate-focused investment manager and independent power producer.

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