Renew Financial closes $200 million revolver for residential PACE

By Tali Rackner

Norfolk, Va., Oct. 18 – Renew Financial LLC closed on a $200 million two-year revolving credit facility with Natixis as administrative agent and lender, according to a Tuesday press release.

The new credit facility will provide financing for residential PACE (Property Assessed Clean Energy), a program that allows property owners to finance energy efficiency, renewable energy and water efficiency projects through their property taxes.

When fully drawn, the facility will finance energy improvements for more than 7,000 homes.

The facility is structured as a revolver, and the company anticipates that it will periodically refinance the line and then re-borrow, enabling it to finance improvements for tens of thousands of homes over the life of the facility, the release said.

"The closing of the facility marks a new phase in our business plan where we are transitioning from being a PACE asset originator to being a PACE asset owner,” chief financial officer Kirk Inglis said in the release.

“As an owner of assets, we now have access to a variety of financing options that we can utilize to lower our cost of capital and drive profitability."

The Oakland, Calif.-based financing company works with more than 300 city and county governments in California to provide PACE financing to about 20 million Californians.

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