UK insurer Legal & General has jumped into the US renewable debt market, agreeing to a $65.8 million solar debt transaction with Ahana Operations, a renewable financing subsidiary of Massachusetts-based Atlantic Tele-Network.
The deal will allow Ahana to refinance a portfolio of 59 ground-mounted and rooftop solar panel installations in California, Massachusetts and New Jersey with a total capacity of 45.8MW.
“This marks the first US renewables transaction secured for our clients,” said Charles-Henry Lecointe, a senior infrastructure investment manager at L&G Investment Management Real Assets.
“We have built up a strong track record in the renewables space, having now closed five transactions in the UK and the US, and will continue to target this sector as part of Legal & General’s wider approach to real asset investments.”
The deal was funded by L&G and managed by LGIM Real Assets, while London-based Independent Debt Capital Markets served as the sole arranger. The private placement consists of two series of senior-secured amortising loan notes, maturing on 31 March 2029 and 30 September 2031. The coupon was not disclosed.
While the deal marks London-based L&G’s first US renewables debt transaction, the group made its entry into the US infrastructure market last year. In September, L&G contributed $100 million to fund the $1.34 billion expansion of the University of California, Merced campus.