Summary
First Solar, Inc. (FSLR) announced on May 11, 2018, that its indirect wholly-owned Australian subsidiary, FS NSW Project No 1 Finco Pty Ltd, secured a significant financing package for a new solar project. The Credit Facility, totaling AUD 151.0 million (approximately $113 million), is earmarked for the development and construction of an 87 MWAC photovoltaic power plant in New South Wales, Australia. This development signals First Solar's continued commitment to expanding its renewable energy portfolio in key international markets. The financing is structured into three tranches: a construction loan facility of AUD 140.0 million, a Goods and Services Tax (GST) facility of AUD 7.0 million, and a letter of credit facility of AUD 4.0 million. The interest rates are tied to Australian interbank rates, with the construction loan converting to a term loan upon project completion. The facility is secured by the borrower's assets and equity interests, and includes standard covenants and default provisions. This move demonstrates First Solar's ability to secure project-level financing, which is crucial for funding large-scale renewable energy developments and a positive indicator for future growth.
Key Highlights
- 1First Solar's Australian subsidiary secured a AUD 151.0 million ($113 million) term loan agreement for project financing.
- 2The funds will be used to develop and construct an 87 MWAC photovoltaic power plant in New South Wales, Australia.
- 3The Credit Facility includes a AUD 140.0 million construction loan, a AUD 7.0 million GST facility, and a AUD 4.0 million letter of credit facility.
- 4Interest rates on the loans are variable, linked to Australian interbank rates (BBSY) plus a spread.
- 5The construction loan will convert to a term loan upon project completion, with the term loan maturing in May 2023.
- 6The GST facility matures in May 2020.
- 7The Credit Facility is secured by the borrower's assets, accounts, material project documents, and equity interests.