Spruce wraps up USD-124m residential PV debt financing

US distributed generation solar plants operator Spruce Finance has closed a USD-124-million (EUR 114.4m) debt financing for its residential solar power purchase agreements (PPAs) and leases.

The company said in a statement on Monday that the fresh funds will be a “significant capital boost” to its merger and acquisition (M&A) and organic growth targets, supporting investments in corporate initiatives for improving customer service. A portion of the debt will go to pay off an existing loan on some rooftop photovoltaic (PV) assets.

The financing was provided by Vantage Infrastructure and Sequoia Economic Infrastructure Income Fund (SEQI). "The benefits of this new capital infusion will be seen nearly immediately, as we work toward acquiring additional solar portfolio acquisitions in the near future, and further scale up customer service," said Christian Fong, CEO of Spruce.

Troutman Sanders was Spruce’s legal counsellor in the debt funding deal, while Norton Rose Fulbright provided legal advice to the lenders. Key Bank Capital Markets served as financial adviser.

Houston-based Spruce acquires operating residential and commercial and industrial (C&I) solar plants, as well as PPAs, in North America. Presently, it manages or owns over 200 MW of assets.

(USD 1.0 = EUR 0.923)

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