MassMutual co-lends $177m to RET Capital

MassMutual and NORD/LB co-lend in two debt financings with Renewable Energy Trust Capital.

Massachusetts Mutual Life Insurance Company alongside Germany bank NORD/LB provided around $177 million in total debt to independent renewable financier Renewable Energy Trust Capital (RET Capital), over the course of last year, for the acquisition of four solar projects in the US and Canada, PDI sister title low carbon energy investor reported.

RET Capital, whose lead investor is BlueMountain Capital Management, has closed CAD115 million ($91 million; €84 million) of non-recourse debt to support the acquisition of two solar facilities in Ontario, Canada. The company closed a CAD68 million non-recourse loan, CAD47 million of fixed rate notes and a letter of credit facility with MassMutual and Germany’s NORD/LB (Norddeutsche Landesbank Girozentrale), to acquire the 12.6 Mega Watts (MW) and 14.2 MW projects from Canadian Solar. The projects will provide power to the Ontario Power Authority under 20-year feed-in-tariff contracts.

RET Capital closed two additional non-recourse debt financings – totalling $121 million – to buy two solar facilities in California that provide more than 44 MW.

The deal saw RET Capital close a non-recourse term loan and letter of credit worth $86.2 million to acquire a 31.26 MW plant in Modesto, California, with Mass Mutual and Nord/LB again. The company also purchased the solar facility from K Road Power Holdings at the same time.

Bringing total debt extended to the firm last year to around $212 million, RET Capital closed a non-recourse term loan, letter of credit facility and 1603 cash grant loan with KeyBank National Association to purchase another 13.1 MW solar project in Imperial County, California. KeyBank provided a total credit facility of $35.2 million.