Altus Power America, Inc., a market-leading solar power company that provides clean electricity to commercial, industrial and municipal clients across the U.S., announced today that Blackstone (NYSE: BX), through its GSO Capital Partners LP and Blackstone Insurance Solutions groups, has led a recapitalization with $850 million of funded and committed capital to refinance the existing capital structure and fund future development.
The recapitalization consists of preferred and minority equity and investment grade-rated debt financing provided by GSO and a BIS-led consortium, respectively, and a construction-to-term loan facility from a syndicate of commercial banks, providing Altus Power with sufficient capital to grow its portfolio to over $1 billion of commercial and industrial solar assets.
Altus Power is experiencing significant growth in demand from its private and public clients for locally sited solar arrays – in many instances in combination with battery storage – that are capable of producing energy savings for off-takers, creating rent payments for real estate owners, and helping its clients meet corporate sustainability goals. To meet this demand, Altus Power and Blackstone have created a partnership that solidifies Altus Power’s position as one of the most competitive solar power companies in the industry. The recapitalization includes one of the first ever privately rated investment-grade financings comprised solely of commercial and industrial distributed solar assets.
“We’re incredibly enthusiastic to be partnering with Blackstone as we position our business for accelerating growth. By providing Altus with a full capital structure solution, including investment-grade rated permanent senior financing, Blackstone is empowering Altus to be one of the most competitive capital partners in distributed generation solar,” said Gregg Felton, Managing Partner of Altus Power.
“We are excited to partner with Altus, a leading developer and operator of solar assets with a best in class management team. Our investment will enable Altus to meet growing demand for low cost, renewable energy in North America and we believe represents an attractive opportunity for our investors,” said Robert Horn, Senior Managing Director of Blackstone and Co-Head of GSO’s Energy Group.
About Altus Power
Altus Power is a market-leading solar power company based in Greenwich, Connecticut that provides clean electricity to commercial, industrial and municipal clients across the U.S. Since its founding in 2009, Altus has developed or acquired more than 130 distributed generation solar facilities totaling in excess of 180 megawatts from Vermont to Hawaii. Visit www.altuspower.com to learn more.
About GSO Capital Partners
GSO is one of the world’s largest credit-oriented alternative asset managers with approximately $121 billion in total assets under management as of September 30, 2019. GSO’s team of 391 professionals constitutes one of the largest in the industry, with a deep reservoir of credit expertise and experience across a range of market cycles, further enhanced by access to Blackstone’s global resources and perspective. GSO’s scale and expertise allow it to provide financing solutions that enhance a corporation’s financial flexibility, while capturing opportunities for investors. The solutions GSO offers draw upon a range of non-investment grade investments such as leveraged loans, high yield bonds, distressed debt, mezzanine lending and rescue financing.
About Blackstone Insurance Solutions
Blackstone Insurance Solutions manages assets for insurance company clients, including affiliates of Blackstone and third-party insurers. The BIS team leverages Blackstone’s leading investment platforms including private credit, private equity, real estate and hedge funds to deliver tailored solutions that meet insurers’ unique objectives.
