Etrion gets €222 million loans, bonds to refinance Italian solar parks

By Lisa Kerner

Charlotte, N.C., Dec. 2 – Etrion Corp. refinanced a majority of its Italian solar parks with a €222 million portfolio financing that included long-term, non-recourse bank debt and project bonds.

The Italian refinancing included several steps.

Etrion procured new senior financing, which is a combination of €35 million of floating project finance bonds, a €177 million floating project finance loan and a €10 million debt service reserve facility.

The €177 million floating project finance loan and the €10 million debt service reserve facility were provided by mandated lead arrangers Natixis, BNP Paribas CIB and Creval, according to a news release.

In addition, Etrion created an Italian holding company for tax savings across the portfolio, canceled its previous outstanding project debt, including repayment of outstanding loans, and entered into new contracts to hedge payments at current rates.

The refinancing will reduce the all-in interest paid to about 3.5%, from 7%, eliminate cash sweep provisions and extend final maturity.

Six out of seven of Etrion’s Italian solar projects totaling 53.6 MW (10 out of 17 solar plants) were included in the refinancing.

“We are very pleased to close the Italian refinancing, which will result in a significant increase in annual cash distributions from our Italian projects,” said chief executive officer Marco A. Northland.

The refinancing initiative will result in a 76% increase to the company’s expected annual Italian cash distributions, to an average annual distribution of about €7.9 million per year, from the 2014 run rate of roughly €4.5 million per year.

Natixis was the arranger and bookrunner.

Etrion is a Geneva-based a solar independent power producer.

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