Tenaska Refinances California Solar Facility Through Green Bond

Tenaska, a Nebraska-base independent power producer, has closed refinancing on its 150 MW Tenaska Imperial Solar Energy Center West project through an issuance of $400 million of senior secured, long-term notes.

The private placement received an investment-grade rating of BBB by Kroll, and Tenaska says the notes have been designated as green bonds because the renewable energy project contributes to greater environmentally sustainability. Sustainalytics, an independent environmental, social and governance research, ratings and analysis firm, provided a second-party opinion endorsing Tenaska Imperial West’s Green Bond Framework. The opinion follows the guidance provided by the Green Bond Principles of 2017.

“Tenaska Imperial West continues to be a successful project, and the market responded favorably,” says Greg Van Dyke, Tenaska’s chief financial officer. “This speaks to the financial strength of the project and to Tenaska’s reputation in the industry.”

Tenaska Imperial West began full commercial operation in April 2016 under a 25-year power purchase agreement with San Diego Gas and Electric (SDG&E). Tenaska says the photovoltaic solar field, located near Seeley in California’s Imperial Valley, can produce enough power for approximately 55,000 homes.

At the time of its initial financing in 2014, Tenaska Imperial West was one of the largest solar facilities financed in the U.S. commercial bank market, according to the company.

An affiliate of Tenaska is the owner of Tenaska Imperial West, which is one of two utility-scale solar projects Tenaska has developed in the Imperial Valley. Tenaska Imperial Solar Energy Center South can produce up to 130 MW of electricity under a 25-year power purchase agreement with SDG&E.

Morgan Stanley & Co. LLC, MUFG Securities America Inc. and BNP Paribas Securities Corp. acted as co-placement agents for the senior secured notes. The Bank of Tokyo-Mitsubishi UFJ Ltd. and BNP Paribas are providing letters-of-credit and working capital facilities. Riverside Risk Advisors assisted Tenaska in designing and executing its interest rate risk management program.

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