Short list: District Energy Deal of the Year 2020
Power Finance & Risk is pleased to announce the short list for the following award: District Energy Deal of 2020.
We have selected two landmark transactions within the district energy sector for your consideration. Please let us know if your firm is missing from the credits.
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
Detroit Renewable Energy
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’ counsel: Kirkland & Ellis
Borrowers’ counsel: Morgan Lewis