FIRST SOLAR, INC. 8-K Report, Corporate Update (May 27, 2022)

Summary

This 8-K filing by First Solar, Inc. (FSLR) on May 27, 2022, details a significant financing agreement for a solar project in Japan. The company's indirect subsidiary, FS Japan Project 25 GK, secured a Credit Facility of up to ¥21.5 billion (approximately $168.1 million) for the development and construction of a 53 MWAC photovoltaic power plant in Tochigi, Japan. Importantly, this Credit Facility, along with the Project Company, is slated for transfer to PAG Real Assets as part of the expected sale of First Solar's utility-scale solar project development platform in Japan. This indicates a strategic divestment of a specific business segment while still enabling the completion of the Japanese project through external financing.

Key Highlights

• 1First Solar's Japanese subsidiary secured ¥21.5 billion (~$168.1 million) Credit Facility for a 53 MWAC solar project in Tochigi, Japan.
• 2The Credit Facility includes a ¥18.8 billion term loan, a ¥1.9 billion consumption tax facility, and a ¥0.8 billion debt service reserve facility.
• 3Interest rate for the facilities is 6-month LIBOR plus a spread of 0.85% per annum, payable bi-annually.
• 4The Credit Facility is secured by the Project Company's assets, project documents, and equity interests.
• 5The project and Credit Facility are expected to be transferred to Momura Solar Plant L.P. (a PAG Real Assets subsidiary) as part of the sale of First Solar's Japanese project development platform.
• 6This financing event is linked to First Solar's strategic decision to exit its utility-scale solar project development platform in Japan.

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