Summary
This 8-K filing reports on NextEra Energy, Inc. (NEE) subsidiary, McCoy Solar Funding, LLC, securing $425 million in limited-recourse construction and term loan facilities and a $154 million variable rate cash grant bridge loan facility. These facilities are crucial for financing the development and construction of a 250-megawatt utility-scale solar photovoltaic generating facility in California, known as the McCoy Project. The project is expected to be completed by the end of 2016, with the loans being drawn down over the construction period. The financing includes interest rate swaps for a majority of the term loan payments, aiming to mitigate interest rate risk.
Key Highlights
- 1McCoy Solar Funding, LLC, an indirect subsidiary of NEE, secured Project Facilities totaling $579 million ($425 million construction/term loan + $154 million cash grant bridge loan).
- 2Proceeds will fund the construction of a 250 MW utility-scale solar photovoltaic generating facility in California (McCoy Project).
- 3The McCoy Project is anticipated to be completed by the end of 2016.
- 4Approximately $125 million of the cash grant loans were drawn on December 19, 2014.
- 5Interest rate swaps have been entered into to hedge interest rate risk on a majority of the term loan payments.
- 6The Project Facilities are limited-recourse and secured by the assets and equity interests of the borrower and its subsidiaries.
- 7NextEra Energy Capital Holdings, Inc. (NEECH) and NEE provide guarantees for certain payment obligations related to the cash grant loans and remaining equity contributions.