8-KOther Events

FIRST SOLAR, INC. 8-K Report, Corporate Update (Aug 28, 2014)

Filed August 28, 2014For Securities:FSLR

Summary

First Solar, Inc. (FSLR) announced on August 28, 2014, that its indirect wholly-owned subsidiary, Parque Solar Fotovoltaico Luz Del Norte SpA, has secured a significant credit facility to finance a new approximately 141 MW photovoltaic power plant near Copiapó, Chile. This project financing, totaling up to $290,000,000 in limited-recourse senior secured debt, is provided by the Overseas Private Investment Corporation (OPIC) and the International Finance Corporation (IFC). This development is a key indicator of First Solar's ability to secure substantial project financing for its international ventures, which is crucial for expanding its global footprint and revenue streams. The financing structure, including a $65,000,000 VAT credit facility with Banco de Crédito e Inversiones, underscores the viability of the Chilean project and First Solar's commitment to its development, although it also highlights a guarantee provided by the parent company for the VAT facility.

Key Highlights

  • 1Secured up to $290 million in limited-recourse senior secured debt financing for a 141 MW solar project in Chile.
  • 2Financing is provided by the Overseas Private Investment Corporation (OPIC) and the International Finance Corporation (IFC).
  • 3OPIC committed up to $230 million, with $178 million currently committed and $52 million subject to future events (e.g., power purchase agreement execution).
  • 4IFC committed up to $60 million in financing.
  • 5The senior loans have maturities extending to September 15, 2032, indicating long-term project financing.
  • 6An additional credit facility of approximately $65 million for Chilean value-added tax (VAT) was secured from Banco de Crédito e Inversiones (Bci).
  • 7First Solar provided a guaranty for substantially all payment obligations related to the VAT facility, representing a contingent liability for the parent company.

Frequently Asked Questions

This filing announces that First Solar's indirect subsidiary in Chile has entered into significant credit facilities to finance the development, construction, and operation of a new 141 MW solar power plant. It details the terms and lenders involved in this project financing.

The main lenders for the senior secured debt financing are the Overseas Private Investment Corporation (OPIC) and the International Finance Corporation (IFC). Additionally, Banco de Crédito e Inversiones (Bci) is providing a credit facility specifically for Chilean value-added tax (VAT).

The project has secured up to $290,000,000 in limited-recourse senior secured debt financing from OPIC and IFC, plus an additional approximately $65,000,000 credit facility from Bci for VAT purposes, bringing the total potential financing to around $355,000,000.

Yes, First Solar has provided a guaranty to Banco de Crédito e Inversiones (Bci) for substantially all payment obligations of the Project Company under the VAT Facility Agreement. This means First Solar is on the hook if the subsidiary defaults on the VAT loan.