Altus Power gets $100 million six-year term financing

By Wendy Van Sickle

Columbus, Ohio, Jan. 2 – Altus Power Inc. entered into a credit agreement on Dec. 27 with Wilmington Trust, NA as administrative agent for $100 million in term loan financing, according to an 8-K filing with the Securities and Exchange Commission.

APA Generation Holdings, LLC is the borrower.

The company can also allow for the funding of additional incremental loans in an amount not to exceed $100 million over the term of the credit agreement at the discretion of the lenders.

The borrower’s obligations are secured by the assets of the borrower, its parent, Altus Power, LLC and the company.

At closing, the company borrowed the full $100 million.

Interest accrues at an initial rate equal to 8.5%, subject to adjustments. The loans mature on Dec. 27, 2029, and there are no principal payments owed until then. Interest is paid quarterly in arrears beginning on March 31, 2024.

Altus has agreed to provide the lenders a right of first offer on certain future add-debt facility and operating company financing needs. The company has also agreed to provide, for a period of 18 months following the closing date, the right of the lenders to increase the applicable rate in connection with the future financings.

The company expects to use the proceeds for its growth and expansion needs.

Altus Power is a Stamford, Conn.-based developer, owner and operator of commercial-scale solar facilities.

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