Prudential Capital has provided a $20 million credit facility to Idaho USG Holdings, a subsidiary of US Geothermal Inc., according to an announcement released on Thursday (19 May). The facility has a fixed interest rate of 5.8 percent, a seven year term and the option to issue up to $50 million in aggregate debt during the next two years.
The funding will be used to pay back an existing $1 million loan with a 7 percent interest rate, pursue strategic acquisitions and support existing projects. The transaction is backed by USG's ownership stakes in two existing geothermal projects; a 60 percent stake in the 22MW Neal Hot Springs in Oregon and a 95 percent stake in the 13MW Raft River project in Idaho.
“US Geothermal has proven itself to be one of the leading developers and operators of geothermal projects,” said Prudential Capital Energy Finance Group managing director Wendy Carlson in a statement. “This investment reflects our strategy of being a reliable provider of capital to high-quality developers with proven track records in the North American power industry,” she added.
US Geothermal is a renewable energy company focused on the sale of electricity from geothermal energy with total generation of 45 MWs and plans to expand to 200 MW by 2020. It currently operates projects in Oregon, Nevada and Idaho and is developing projects in Guatemala, California and elsewhere.
Prudential Capital invests both its parent insurance company's funds and third party funds, offering senior debt and mezzanine capital, leveraged leases, credit tenant leases and equipment finance. The Chicago-headquartered firm oversees $74 billion in capital and maintains offices in Atlanta, Dallas, Los Angeles, Minneapolis, New York, San Francisco and Newark, New Jersey. In Europe, it has offices in London, Frankfurt, Paris and Milan .