Renewable energy company Altus Power has successfully closed a secured credit facility, securing a principal loan of $100 million from an affiliate of Goldman Sachs Asset Management and CPPIB Credit Investments III, a subsidiary of Canada Pension Plan Investment Board (CPP Investments).
The solar developer intends to utilize the proceeds from the credit facility to bolster its ongoing expansion initiatives. The facility, featuring an interest rate of 8.50% and a term of six years, allows for penalty-free prepayment after three years.
Dustin Weber, Chief Financial Officer at Altus Power, expressed satisfaction with the addition of Goldman Sachs and CPP Investments as partners, emphasizing the infusion of capital to support the company's growth plans in 2024. He highlighted the financing structure's alignment with Altus Power's business model, emphasizing the growing cash flow generation as a key aspect.
Gregg Felton, Co-founder and Co-chief Executive of Altus Power, elaborated on the company's optimistic outlook, citing a robust pipeline of operating and development assets. With this efficient financing in place, Altus Power aims to strategically execute on these opportunities, positioning itself to enhance market share while providing counterparties with execution certainty.
Felton emphasized the potential for continued profitable growth, aligning with the company's commitment to sustainable and lucrative expansion.