- UGE International (UGE) has secured debt and tax equity financing for its next two NYC community solar projects
- Both projects, located in Staten Island, have now reached the Notice to Proceed milestone, the point at which construction can commence
- The solar facilities will have a combined rated capacity of 723 kW and become operational by Q4 2021
- Debt and tax equity financing terms were in line with UGE’s expectations
- UGE develops, owns and operates commercial and community solar projects in the U.S. and strategic markets abroad
- UGE International (UGE) closed the day down 2.17 per cent trading at $1.35 per share
UGE International (UGE) has secured debt and tax equity financing for its next two NYC community solar projects.
Both projects, located in Staten Island, have now reached the Notice to Proceed milestone, the point at which construction can commence.
The solar facilities will have a combined rated capacity of 723 kW.
UGE expects the projects – both of which are on buildings owned by the same real estate owner – to become operational by Q4 2021.
The company secured project-level construction and term financing with an institutional lender with which UGE has an existing relationship.
The debt facility is a customary construction-to-permanent structure, wherein the construction financing will become term debt once the solar facilities are operational. At that point, the contractual interest rate will be 6 per cent, the term will be seven years, and the amortization schedule will be over 20 years. The interest rate is 8.5 per cent during the construction period.
The institutional tax equity financing for the two projects is through a customary partnership-flip agreement.
Debt and tax equity financing terms were in line with UGE’s expectations.
Nick Blitterswyk, UGE’s CEO, commented,
“UGE’s project development team has been exceptionally busy in the past year, securing new projects throughout the northeast United States, increasing our project development backlog and our overall pipeline.
Through financing these two projects we experienced strong demand from both debt and tax equity sources. As a growing number of our projects reach the deployment stage through the end of 2021 and into 2022, we look forward to expanding these project financing relationships on increasingly favorable terms.”
UGE develops, owns and operates commercial and community solar projects in the U.S. and strategic markets abroad.
UGE International (UGE) closed the day down 2.17 per cent trading at $1.35 per share.
