Alterra Power secures financing for Spartan solar project
Written By: Katherine Demetre
August 8, 2017
On Aug 8, 2017, Alterra Power Corp and Inovateus Solar LLC announced the closing of a $19.9 million construction loan facility for the Spartan solar project located on the Michigan State University campus.
According to sources, the loan facility was supplied by 1st Source Bank and consists of a $19.8 million construction loan plus a $500,000 letter of credit. They also provided a $9.7 million tax equity investment commitment and a $10.2 million term loan commitment.
Furthermore, Alterra completed a partnership agreement with Inovateus where they plan to manage the project and hold a majority interest of at least 85%.
Alterra expects the Spartan project to achieve commercial operations in December 2017. Spartan is contracted under a 25-year power purchase agreement with the Board of Trustees of Michigan State University for 100% of plant output.
Jon Schintler, VP of Project Finance & Development at Alterra, commented:
We’re pleased to complete this second project with our solar partner Inovateus, and to complete another financing with 1st Source. We look forward to serving Michigan State University for many years and hopefully expanding our Midwest solar operations.