OAKLAND, Calif., Oct. 18, 2016 /PRNewswire/ -- Renew Financial, one of the nation's leading clean energy finance companies, today announced that it has closed a $200 million revolving credit facility. The new credit facility will provide financing for residential PACE (Property Assessed Clean Energy), a program that enables homeowners to finance energy efficiency, renewable energy and water efficiency projects through their property taxes. Natixis acted as Administrative Agent and Lender for the two-year facility. When fully drawn, the facility will finance energy improvements for over 7,000 homes. The facility is structured as a revolver, and the company anticipates that it will periodically refinance the line and then re-borrow, enabling it to finance improvements for tens of thousands of homes over the life of the facility.
Commenting on the deal, Kirk Inglis, CFO of Renew Financial said, "The closing of the facility marks a new phase in our business plan where we are transitioning from being a PACE asset originator to being a PACE asset owner. As an owner of assets, we now have access to a variety of financing options that we can utilize to lower our cost of capital and drive profitability."
"The facility will allow us to continue providing PACE financing at attractive rates to homeowners. Given investor interest in PACE and Renew Financial's high growth rate, we anticipate that this will be the first in a series of PACE financing transactions," said Mary Kathryn Lynch, SVP of Capital Markets.
Mimi Frusha, EVP of Financial Operations, commented, "This transaction continues the ongoing relationship between Renew Financial and Natixis. We've worked with Natixis in the past in connection with Apollo's Golden Bear financings and look forward to continuing the strong partnership."
Brock Wolf, Executive Director at Natixis, said, "Natixis is committed to continuing to play a leading role in the worldwide expansion of renewable energy financing. We've worked with Renew Financial over the past two years in connection with the successful Golden Bear warehouse and securitization transactions. We were gratified to be chosen by Renew Financial to work on this transaction and look forward to continuing this strong relationship for years to come."
About Renew Financial
Renew Financial was founded in 2008 by Cisco DeVries, who originated the idea of the Property Assessed Clean Energy (PACE) financing model. Endorsed by President Obama and named by Scientific American as one of the top 20 ideas that can change the world, PACE enables property owners to finance the entire cost of energy and water efficiency and renewable energy upgrades to their homes and businesses, and then repay those costs on their property tax bill. PACE is also a central component of a major White House clean energy initiative unveiled in August 2015. Renew Financial's other financing products including the Warehouse for Energy Efficiency Loans (WHEEL), which opens the residential energy efficiency finance market to large institutional investors.
Natixis is the international corporate, investment, insurance and financial services arm of Groupe BPCE, the 2nd-largest banking group in France with 35 million clients spread over two retail banking networks, Banque Populaire and Caisse d'Epargne.
With more than 16,000 employees, Natixis has a number of areas of expertise that are organized into three main business lines: Corporate & Investment Banking, Investment Solutions & Insurance, and Specialized Financial Services. A global player, Natixis has its own client base of companies, financial institutions and institutional investors as well as the client base of individuals, professionals and small and medium-size businesses of Groupe BPCE's banking networks.
Mary Kathryn Lynch
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SOURCE Renew Financial