sPower Closes $498.7 Million Bond Deal

SALT LAKE CITY–(BUSINESS WIRE)–sPower, a leading renewable energy Independent Power Producer, recently
closed a $498.7 million, investment grade, private placement financing.
The financed portfolio represents approximately half of sPower’s 1.3 GW
of operating portfolio. This financing follows sPower’s $421.4 million
debt issuance against approximately 565 MW of utility-scale solar and
wind assets in 2017 (a transaction that received Project Finance
International’s “Americas Renewables Deal of the Year” award). These
transactions are among the first ever widely-distributed back-leverage
bond financings on tax equity partnerships. The portfolio is comprised
of four previously financed tax equity partnerships with four leading
financial investors.

“Repeated success always feels great. Our first issuance was an
achievement, but this second deal cements sPower’s ability to execute
consistently and at the highest level in the institutional debt markets.
We are grateful to have financing counterparties and partners that
continue to ‘be there’ to support sPower’s growth,” said sPower CEO,
Ryan Creamer.

The proceeds from this issuance refinanced approximately $425 million of
medium-term bank loans, lengthening tenor to a fully-amortizing
23.5-year facility and eliminating the refinancing risk associated with
previous bank loans. Incremental proceeds net of the bank loan
refinancing will be used to fund sPower’s continued development of
additional renewable generating facilities. The offering was
significantly oversubscribed by a diverse group of leading US private
placement investors.

“We feel great about taking this much interest rate risk off the table
in today’s environment. As the space continues to get more competitive,
the importance of de-risking cash flows to preserve our margins has
never been more important. We are also very pleased with the level of
execution around term and rates,” said sPower CFO, David Shipley.

Citigroup Global Markets Inc. served as Ratings Advisor, Structuring
Agent, and Lead Placement Agent. CIBC World Markets Corp, Credit
Agricole Securities, KeyBanc Capital Markets Inc., Rabo Securities USA
Inc., Societe Generale Americas Securities, LLC, and Wells Fargo
Securities, LLC served as Co-Placement Agents. CohnReznick Capital
served as an advisor. Stoel Rives LLP served as sPower’s counsel in the
deal and Skadden served as Note Purchasers’ counsel.

About sPower:

sPower,
an AES and AIMCo company, is the largest private owner of operating
solar assets in the United States. sPower owns and operates a portfolio
of solar and wind assets greater than 1.3 GW and has a development
pipeline of more than 10 GW. sPower is owned by a joint venture
partnership between The AES Corporation (NYSE: AES), a worldwide energy
company headquartered in Arlington, Virginia, and the Alberta Investment
Management Corporation, one of Canada’s largest and most diversified
institutional investment fund managers. For more information, visit www.sPower.com.

Contacts

sPower
Camille Press, Communications Specialist
801-679-3542
cpress@sPower.com