Ameresco announces amendment to term loans, revolving credit facility

Ameresco, in a regulatory filing, said that on December 11 it entered into an amendment to its term loans and revolving credit facility with the lenders party thereto, BOFA Securities, Inc., Fifth Third Securities, Inc. and KeyBanc Capital Markets, Inc., as joint lead arrangers and bookrunners, Webster Bank N.A. as Co-Documentation Agent, and Bank of America, N.A., as Administrative Agent. Among other things, the Amendment extends the maturity date of the remaining $65M principal amount of the original $220M delayed draw term loan A, such that $10M is due on each of January 31, 2024, February 29, 2024, and March 31, 2024, and the remaining principal amount is due on April 15, 2024. If one of the company’s BESS projects with Southern California Edison Company, does not achieve substantial completion by January 31, 2024, the Amendment also adds a covenant requiring Ameresco in such case, to use commercially reasonable efforts assuming normal market conditions to raise and, by April 15, 2024, close on a minimum of $100M equity or subordinated debt financing. The company currently expects the project to be substantially complete in the next month. Net proceeds from such financing, if it occurs, would be required to be used to repay the delayed term loan A and pay down amounts borrowed under the revolving credit facility. If such covenant becomes applicable, it would fall away when the delayed draw term loan A is paid in full, if the company has demonstrated a minimum liquidity of $75M on or prior to February 29, 2024. Shares of Ameresco are down over 5% to $29.96 in late morning trading.