Spruce Finance has closed a $208 million senior secured debt financing for its portfolio of residential solar assets as it looks to acquire more.
The financing takes the form of a seven-year term loan reflecting the terms of Spruce's customer contracts, a spokesperson for the company in San Francisco tells PFR.
The pricing of the loan could not immediately be established, Spruce referring to it only as "competitively priced capital" in a statement announcing the deal.
Silicon Valley Bank and ING were coordinating lead arrangers and joint bookrunners on the deal, while Key Bank was joint lead arranger. Other lenders also participated but were not identified.
Spruce is actively pursuing acquisition opportunities to add to its 150 MW portfolio.
"As the solar financing landscape continues to evolve, we see an opportunity to grow our portfolio while providing integrated services," said Christian Fong, president and ceo of Spruce Finance, in a statement. "Our strong financing and M&A capabilities, paired with our subsidiary Energy Service Experts' servicing offerings puts us in a unique position in the industry."
The term loan is the first major financing announcement from the residential solar company since it was taken over by former creditor HPS Investment Partners in 2017 amid a reshuffle of its management team and a relocation of its headquarters (PFR, 12/14/18).
While it is now officially headquartered in Houston, the company maintains executive and mergers and acquisitions offices in San Francisco.
Fong, who has been co-chairman of Spruce’s board of directors since early 2017, took over as president and ceo in November of 2018. The previous holder of the top job, Steve Olszewski, had been in the role since June 2017 but departed in April of the following year.