Short list: District Energy Deal of the Year 2020

Stonepeak Infrastructure Partners secured a $100 million debt package for RED-Rochester, one of North America's largest district energy systems, after pivoting away from a sale process due to pandemic-related market conditions. National Bank of Canada and East West Bank led the deal, with New York Green Bank also joining as a lender. The RED facility is located within the Eastman Business Park in Rochester, New York and has long-term offtake agreements with several park tenants, including Kodak, Rochester Silver Works, ON Semiconductor, LiDestri Foods and Ortho-Clinical Diagnostics.

The deal closed on December 17, 2020. Coverage here.

Sponsor: Stonepeak Infrastructure Partners

Deal value: $100 million

Term loan: $85 million

Tenor: Five to seven years

Revolving credit facility: $15 million

Coordinating lead arrangers: National Bank of Canada and East West Bank (depository agent, interest rate swap provider and lender)

Lender: New York Green Bank

Lenders’ counsel: Shearman & Sterling

Borrowers’ counsel: Mayer Brown

Over the summer of 2020, Basalt Infrastructure Partners and DCO Energy put together an $85 million debt package for Detroit Thermal, the City of Detroit’s underground district steam distribution network which has heated buildings and businesses for more than 100 years. The portfolio's revenues are underpinned by contractual cashflows from local corporations and healthcare facilities. Basalt and DCO originally took ownership of the asset when they acquired its owner, Detroit Renewable Energy, in December 2017.

The deal closed on May 12, 2020. Coverage here.

Sponsors: Basalt Infrastructure Partners and DCO Energy

Deal value: $85 million

Term loan: $75 million

Tenor: Five years

Revolving credit facility: $10 million

Coordinating lead arranger: MUFG

Lenders: SMBC

Lenders’ counsel: Kirkland & Ellis

Borrowers’ counsel: Morgan Lewis