Ellomay Capital unit obtains €175 million term loan in two tranches

By Rebecca Melvin

Concord, N.H., Dec. 8 – Ellomay Capital Ltd. subsidiary Talasol Solar SL entered into a €175 million credit facilities agreement with European institutional lenders, according to a press release on Wednesday.

The agreement provides a €155 million term loan for 22.5 years and a €20 million term loan for 21 years.

The weighted average life of the new financing is about 11.5 years, compared to the previous financing’s 5.5 years weighted average life.

It bears a fixed annual interest rate at a weighted average of about 3%, compared to a variable interest rate that was fixed at an average of about 3% by an interest rate swap contract previously.

Out of the new financing, €6.9 million will be deposited in Talasol's account as a debt service fund and €10 million will be deposited in Talasol's bank account as security for a letter of credit to the PPA provider.

The new financing is expected to close in the coming weeks.

Talasol will use the proceeds to repay €121 million of current project finance debt.

Ellomay Chief Executive Ran Fridrich said, "The refinancing represents an increase in the expected average debt service coverage ratio from 1.3 to 1.7 and is expected to improve the cash flow of Talasol over the remaining period of the PPA (nine years) by approximately €3 million per year on average.”

Based in Israel, Ellomay Capital is a power generator and developer of renewable energy and power projects in Europe and Israel.

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