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

Reports
Other Events
Filing Date
Filed May 27, 2022
Period End
May 24, 2022
Security
FSLR
In the record · 2016–202610-K1110-Q328-K110

FSLR filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 110 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jan ’17Jan ’17
  2. Leadership change8-K · Apr ’19Apr ’19
  3. Leadership change8-K · Jul ’21Jul ’21
  4. Material agreement8-K · Feb ’26Feb ’26

01—Abstract

Summary

Summary of the 8-K filed May 27, 2022. Cited figures are marked; the original filing is the authoritative source.

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 milliona) 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.

02—Key points

Key Highlights

  1. First Solar's Japanese subsidiary secured ¥21.5 billion (~$168.1 million) Credit Facility for a 53 MWAC solar project in Tochigi, Japan.
  2. The 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.
  3. Interest rate for the facilities is 6-month LIBOR plus a spread of 0.85% per annum, payable bi-annually.
  4. The Credit Facility is secured by the Project Company's assets, project documents, and equity interests.
  5. The 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.
  6. This financing event is linked to First Solar's strategic decision to exit its utility-scale solar project development platform in Japan.

03—Questions

Frequently Asked Questions

  1. What is the primary purpose of the Credit Facility?

    The Credit Facility is intended to finance the development and construction of a 53 MWAC photovoltaic power plant located in Tochigi, Japan.

  2. Who are the lenders for this Credit Facility?

    The lenders are Nomura Capital Investment Co., Ltd. and Aozora Bank, Ltd.

  3. What is the significance of the transfer of the Project Company and Credit Facility?

    The transfer indicates that First Solar is proceeding with the sale of its utility-scale solar project development platform in Japan, with the new owner (PAG Real Assets) assuming responsibility for this project and its financing.

  4. What are the key maturity dates for the different components of the Credit Facility?

    The term loan facility matures in April 2040. The consumption tax facility is expected to mature in October 2025, and the debt service reserve facility matures in April 2040.

04—Continue

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