Altus Power, Inc. Announces Closing of 220 MW Portfolio With Funding by Blackstone

Rhea-AI Summary

Altus Power (NYSE: AMPS) announced the acquisition of approximately 220 MW of solar assets, which includes 207 MW of operating assets and 13 MW under construction, for roughly $293 million. The purchase is financed through a $204 million loan from Blackstone at a fixed interest rate of 5.62%, with an option to refinance after three years. With this acquisition, Altus Power's community solar portfolio now exceeds 20% of its installed megawatts, with additional projects underway in New Jersey, Maryland, New York, and Hawaii. New York is now one of Altus Power's largest markets, alongside Massachusetts and New Jersey, each having over 100 MW of operating solar.

Positive

• Acquisition of 220 MW of solar assets enhances growth potential.
• Community solar accounts for over 20% of installed megawatts, expanding the customer base.
• Partnership with Blackstone strengthens financial backing.

Negative

• Acquisition cost of $293 million may increase debt levels.
• Dependence on fixed-rate debt may limit flexibility.

STAMFORD, Conn.--(BUSINESS WIRE)-- Altus Power, Inc. (“Altus Power” or the “Company”) (NYSE: AMPS), the premier independent developer, owner and operator of commercial-scale solar facilities, today announced that it closed on the acquisition of approximately 220 megawatts (MW) of solar assets, including 207 MW of operating assets and 13 MW of assets under construction. These assets were purchased from True Green Capital Fund III, L.P. under definitive agreements that were previously announced on December 27^th, 2022.

The base purchase price of approximately $293 million was financed partially with debt secured from a $204 million long-term funding facility led by Blackstone Structured Finance at a fixed interest rate of 5.62% and the remainder from cash on hand. The interest rate on the debt is fixed for the term of the facility, and Altus Power additionally has the option to refinance the debt without penalty after 3 years.

“We’re pleased to further expand our relationship with Blackstone as the lender for this new portfolio of assets,” commented Gregg Felton, Co-CEO of Altus Power. “Blackstone has a depth of financing experience across a diversity of asset classes and shares our enthusiasm for commercial-scale solar.”

“This portfolio of long-term contracted assets provides a tremendous opportunity for Blackstone to create high quality long-duration investments with attractive risk-adjusted returns for our growing insurance franchise,” said Robert Camacho, Co-Head of Asset Based Finance within Blackstone’s Structured Finance Group.

Growing Community Solar Customer Base

With the addition of these new assets, Altus Power’s portfolio with community solar customers account for over 20% of the Company’s installed megawatts with an additional approximately seventy megawatts in advanced stages of development in New Jersey, Maryland, New York, and Hawaii which will also be dedicated to community solar programs. Community solar allows a rapidly growing universe of residential customers to enjoy the benefits of solar generation without installing any equipment on their properties. While Altus Power expects most of its assets will continue to serve commercial, industrial and municipal customers, the growing popularity of community solar programs is expanding the customer base for commercial-scale solar arrays.

Increased Presence in New York State

Altus Power is pleased that New York has joined Massachusetts, New Jersey and California as one of the Company’s largest markets, with each now representing more than 100 megawatts of operating solar. Assets are located across New York and include the Zerega project located on the rooftop of a self-storage facility in Bronx County, NY, which the Company recently highlighted as a beneficiary of the Community Solar Employee Participation program offered to employees of both CBRE and Blackstone.

About Altus Power, Inc.

Altus Power, based in Stamford, Connecticut, is the premier commercial-scale clean electrification company serving commercial, industrial, public sector and community solar customers with an end-to-end solution. Altus Power originates, develops, owns and operates locally sited solar generation, energy storage and charging infrastructure across the nation. Visit www.altuspower.com to learn more.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230216005307/en/

Altus Power:

Chris Shelton

Head of IR

InvestorRelations@altuspower.com

Source: Altus Power, Inc.

FAQ

What is the significance of Altus Power's acquisition of solar assets on December 27, 2022?

The acquisition of 220 MW of solar assets boosts Altus Power's portfolio and strengthens its position in the community solar market.

How is Altus Power financing its recent acquisition?

Altus Power financed the acquisition with approximately $204 million from a long-term funding facility from Blackstone at a fixed interest rate of 5.62%.

What percentage of Altus Power's portfolio is now made up of community solar customers?

Community solar customers now account for over 20% of Altus Power's installed megawatts.

Which states are seeing developments in Altus Power's community solar projects?

Altus Power has community solar projects under development in New Jersey, Maryland, New York, and Hawaii.

How does the acquisition affect Altus Power's presence in New York?

The acquisition solidifies New York as one of Altus Power's largest markets, now exceeding 100 MW of operating solar.