Tenaska Imperial Solar Energy Center West reaches debt refinancing

Tenaska has closed refinancing on its 150 MW Tenaska Imperial Solar Energy Center West project through an issuance of US$400 million of senior secured, long-term notes. The private placement received an investment-grade rating of BBB by Kroll.

Tenaska Imperial West began full commercial operation in April 2016 under a 25-year power purchase agreement with San Diego Gas and Electric (SDG&E). The photovoltaic solar field, located near Seeley in California's Imperial Valley, can produce enough power for approximately 55,000 homes.

At the time of its initial financing in 2014, Tenaska Imperial West was one of the largest solar facilities financed in the U.S. commercial bank market.

An affiliate of Tenaska is the owner of Tenaska Imperial West, which is one of two utility-scale solar projects Tenaska has developed in the Imperial Valley. Tenaska Imperial Solar Energy Center South can produce up to 130 MW of electricity under a 25-year power purchase agreement with SDG&E.

Morgan Stanley & Co. LLC, MUFG Securities America, Inc. and BNP Paribas Securities Corp. acted as co-placement agents for the senior secured notes. The Bank of Tokyo-Mitsubishi UFJ, Ltd. and BNP Paribas are providing letters-of-credit and working capital facilities.

Riverside Risk Advisors assisted Tenaska in designing and executing its interest rate risk management program.

The senior secured notes have been designated as green bonds as Tenaska Imperial West, being a renewable energy project, contributes to greater environmentally sustainability.

Greg Van Dyke, Tenaska's chief financial officer, said:

"Tenaska Imperial West continues to be a successful project, and the market responded favorably. This speaks to the financial strength of the project and to Tenaska's reputation in the industry."