SolaREIT™ Announces New $30 Million Revolving Credit Facility with Atlantic Union Bank

Rhea-AI Summary

SolaREIT™ Secures $30 Million Revolving Credit Facility with Atlantic Union Bank to Expand Financing Solutions for Solar and Storage Developers

Insights

Financial Analyst

The announcement of SolaREIT™ securing a $30 million revolving credit facility with Atlantic Union Bank signifies an assertive move to bolster liquidity and support the company's expansion. This strategic financial maneuver provides SolaREIT™ with a competitive advantage in the renewable energy sector, particularly in solar and battery energy storage solutions (BESS). The increased liquidity can enhance the company's ability to invest in new projects, thereby potentially increasing its revenue streams. Furthermore, the partnership with a financial institution like Atlantic Union Bank may boost investor confidence due to the perceived financial stability and endorsement from a reputable bank.

It's also important to analyze the terms of the credit facility, such as the interest rate and covenants, which can affect SolaREIT™'s cost of capital. A competitive cost of capital is crucial for renewable energy companies as it impacts the profitability of long-term investments. The credit facility's impact on the company's balance sheet and financial ratios should be monitored, as excessive leverage can pose risks.

Market Research Analyst

Renewable energy, especially solar and BESS, is a rapidly growing industry with increasing capital demands. SolaREIT™'s ability to secure a second, larger credit facility within a year of the first reflects a healthy demand for financing solutions in this sector. This move is likely to position SolaREIT™ favorably as a go-to financial partner for developers and landowners looking to capitalize on the shift towards clean energy.

The revolving nature of the credit implies operational flexibility for SolaREIT™, allowing it to manage cash flows efficiently and respond to market opportunities swiftly. This could lead to an expansion of its market share and influence in the renewable energy finance space. The facility also reflects a growing trend in the banking industry to support sustainable energy projects, which could have broader implications for the availability of capital to the sector.

Economist

The partnership between SolaREIT™ and Atlantic Union Bank underscores the increasing role of financial institutions in facilitating the transition to clean energy. This collaboration may have a multiplier effect on the economy by enabling more solar and BESS projects, which can create jobs, stimulate technological innovation and contribute to energy independence. Additionally, the availability of such financial instruments can lower the barrier to entry for new players in the renewable energy market, potentially leading to increased competition and innovation.

From an economic standpoint, the focus on clean energy financing aligns with global trends towards sustainability and may attract further investments into the sector. As renewable energy becomes more cost-competitive with traditional energy sources, the economic implications of such credit facilities extend beyond immediate financial metrics to include long-term societal benefits such as reduced carbon emissions and energy cost savings.

New Facility Represents Second Partnership: Competitive Cost of Capital Benefits Solar and Storage Developers Across the Country 

VIENNA, Va., Feb. 28, 2024 /PRNewswire/ -- SolaREIT™, a renewable energy real estate investment company, announced today that they successfully closed on a revolving credit facility with Atlantic Union Bank (AUB). This line of credit provides the company with an additional $30 million of liquidity and will allow SolaREIT™ to continue to scale the business and expand financing solutions for solar and storage developers. It is the second revolving credit facility the partners have closed with AUB— the first was a $15 million facility announced last year. SolaREIT™'s innovative financing model provides solar and battery energy storage solution (BESS) developers and landowners with robust financing options. 

SolaREIT™ announced today that they successfully closed on a revolving credit facility with Atlantic Union Bank.

"We're thrilled to partner with Atlantic Union Bank again to provide financing solutions to clean energy developers. The financing landscape is evolving for solar and BESS developers quickly, and developers need the financial flexibility that SolaREIT™ can provide," said Laura Klein, CFO of SolaREIT™. "The revolving credit facility with Atlantic Union Bank allows us to continue to expand our offerings to support clean energy projects across the country." 

"Atlantic Union Bank is committed to providing our clients with solutions that provide the flexibility they need to grow their business. The transformation to clean energy is our collective responsibility, and our partnership with SolaREIT™ will ensure more clean energy projects are funded efficiently," said John Lester, Commercial Relationship Manager at Atlantic Union Bank. 

Solar and BESS development are increasingly capital-intensive. SolaREIT™ partners with developers and landowners to provide a range of capital solutions to maximize the value of solar or battery storage development on their land. The company's practical, streamlined options for financing solar and storage land deliver unparalleled flexibility based on clients' individual needs, financial goals, and vision for their land. 

For more information: https://www.solareit.com 

About SolaREIT™ 

SolaREIT™, based in Virginia, is an innovative renewable energy real estate company focused on delivering financing solutions for solar and battery energy storage developers. SolaREIT, a minority and women-owned business, was founded in 2020 as a Real Estate Investment Trust (REIT) by clean energy industry veterans with a proven track record in finance, project development, real estate, and community solar. The team is passionate about renewable energy and believes that solar and battery energy storage land financing plays a critical role in expanding the clean energy economy. 

For more information, please visit www.solareit.com. 

About Atlantic Union Bank 

Headquartered in Richmond, Virginia, Atlantic Union Bank is the wholly owned subsidiary of Atlantic Union Bankshares Corporation (Nasdaq: AUB). Atlantic Union Bank offers a wide range of financial services to commercial and retail clients and operates 114 branches and approximately 130 ATMs located throughout Virginia, and in portions of Maryland and North Carolina. Certain non-bank financial services affiliates of Atlantic Union Bank include: Atlantic Union Equipment Finance, Inc., which provides equipment financing; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

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SOURCE SolaREIT

FAQ

What is the latest partnership announced by SolaREIT™?

SolaREIT™ announced a new partnership with Atlantic Union Bank for a $30 million revolving credit facility.

How much liquidity does the new credit facility provide SolaREIT™?

The new credit facility provides SolaREIT™ with an additional $30 million of liquidity.

What is the purpose of the revolving credit facility with Atlantic Union Bank for SolaREIT™?

The purpose of the credit facility is to allow SolaREIT™ to scale the business and expand financing solutions for solar and storage developers.

Why is the partnership with Atlantic Union Bank important for SolaREIT™?

The partnership is crucial as it provides financial flexibility for clean energy developers in the evolving financing landscape.

How does SolaREIT™ support solar and battery energy storage solution developers?

SolaREIT™ offers robust financing options and practical, streamlined solutions for developers and landowners to maximize the value of solar or battery storage development.