Altus closes 220MW deal with Blackstone funding
Altus Power, an independent developer, owner and operator of commercial-scale solar facilities, has closed on a $293 million acquisition of 220MW solar assets.
The Stamford, Connecticut-based firm acquired the assets – 207 MW of operating assets and 13 MW of assets under construction – from True Green Capital Fund III.
The base purchase price of approximately $293 million was financed partially with debt secured from a $204 million long-term funding facility led by Blackstone Structured Finance at a fixed interest rate of 5.62%, and the remainder from cash on hand. The interest rate on the debt is fixed for the term of the facility, and Altus Power additionally has the option to refinance the debt without penalty after three years.
“This portfolio of long-term contracted assets provides a tremendous opportunity for Blackstone to create high quality long-duration investments with attractive risk-adjusted returns for our growing insurance franchise,” said Robert Camacho, co-head of asset based finance within Blackstone’s Structured Finance Group.
Late last year, the investment giant closed a $325 million credit facility for portfolio company Aypa Power. The three-year deal is understood to be launching next week with a letter of credit (LC) and revolving credit facility.
Altus, formerly a Blackstone-owned business, completed a merger with a CBRE-Group-sponsored special purpose acquisition company (SPAC) in December 2021, triggering its entry into the New York Stock Exchange as a publicly traded company.
“We’re pleased to further expand our relationship with Blackstone as the lender for this new portfolio of assets,” commented Gregg Felton, co-CEO of Altus Power. “Blackstone has a depth of financing experience across a diversity of asset classes and shares our enthusiasm for commercial-scale solar.”
Earlier this month, Altus named Sophia Lee as its chief sustainability officer. Lee also works as Altus’ chief legal officer.