Silfab Solar, a photo-voltaic module manufacturer, closed on $100 million of new financing to scale its solar cell manufacturing plant. The $50 million equity investment was led by funds advised by ARC Financial and includes investment from their existing co-investors. The company additionally raised a $50 million senior secured financing led by Breakwall Capital, an energy-focused asset manager and employee-owned firm, and includes an investment from SR Alternative Credit (SRAC).
The green loan and equity financing are designed to advance the overall capacity of Silfab’s cell production and photo-voltaic module manufacturing within its new facility in Fort Mill, South Carolina, and to reshore U.S.-made solar products that are in high demand by the company’s customers. Silfab’s newest U.S. facility is scheduled to be operational by the end of this year.
Sustainable Fitch provided a second-party opinion on the green loan and considers the transaction to be structured in line with the Loan Market Association, Loan Syndications and Trading Association and Asia Pacific Loan Market Association Green Loan Principles. Sustainable Fitch’s view is that the Green Loan’s alignment with these principles is “Excellent.”
“American-made clean energy is and will remain in huge demand. We are thankful for the continued support of both existing and new investors in our mission to lead the reshoring of the PV supply chain, ensuring a sustainable supply of US-made photo-voltaic modules,” Paolo Maccario, president and CEO of Silfab, said. “Silfab’s growing US footprint and increase in domestic content means more jobs for Americans and a lower carbon footprint compared to imported panels.”
“We are thrilled to partner with Silfab as they expand their existing manufacturing capabilities, and integrate a unique operation of high quality, made-in-America solar cells and photo-voltaic modules,” Daniel Flannery, president and managing partner of Breakwall Capital, said. “As the largest private manufacturer of PV modules in North America with over a decade of successful operating experience, this capacity expansion is critical to meet the domestic content demand from its customer base. We could not be more excited to play a part in helping Silfab be a first mover with respect to domestic cell production while furthering the broader reshoring objectives of the entire solar manufacturing ecosystem in the United States.”
Norton Rose Fulbright acted as legal counsel to Silfab. Kirkland & Ellis acted as legal counsel to Breakwall Capital. Stikeman Elliott acted as legal counsel to ARC Financial. RCT Solutions acted as the independent engineer for Breakwall.
