MMA Energy Holdings, a subsidiary of MMA Capital Holdings, closed a secured revolving credit facility with the lenders group and East West Bank as administrative and collateral agent.
The credit agreement establishes a $125 million revolving credit facility of which $70 million has been committed and $30 million has been advanced as of the initial closing. The committed amount may be increased up to the full amount of the facility after the initial closing upon the joinder of additional lenders and may be further expanded by up to an additional $50 million with the concurrence of the lenders.
The credit agreement has a floating interest rate of LIBOR plus 2.75%, payable monthly in arrears and matures in 36 months, subject to one 12-month extension at the option of the Company. The credit agreement is secured by the company’s equity interest in MEH, as well as cash flows generated by MEH’s investments in certain renewable energy lending joint ventures and a general guaranty provided by the company. Proceeds drawn on the facility can be used for existing and additional investments in debt associated with renewable energy and reasonable operating expenses of MEH.
“Today we entered into a new credit facility that will help us increase the Company’s investment in its renewable energy lending platforms and in managing our cash reserves. Although it may take some time to be reflected in our results, with this facility, we expect to improve the company’s return on investment in the renewable energy lending portfolio by limiting the amount of idle cash and leveraging our portfolio returns, as well as increasing our overall capital invested in the portfolio,” said Michael Falcone, MMA Capital’s CEO.
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Brean Capital served as the company’s advisor and placement agent.
