Just Energy Group Inc., a competitive retailer of natural gas and electricity, says its subsidiary's solar business, Hudson Energy Solar, has entered into financing arrangements with Seminole Financial Services LLC and another institutional lender.
The initial funding is for several solar projects under development in New Jersey. This financing arrangement will allow Hudson Energy Solar to complete the projects as well as utilize much of the tax incentives available for renewable energy projects, the company says.
As part of the financing, Seminole has provided construction financing of approximately $12 million and a debt facility of approximately $6.5 million. Additionally, as part of the structure, an institutional lender has provided an aggregate investment of approximately $7 million with respect to the projects. The Seminole construction loan will be repaid from the proceeds of the permanent debt facility and the institutional investment.
CohnReznick LLP acted as an advisor to Hudson Energy Solar on the transaction.