Gore Street Energy Storage Fund said its subsidiary, Big Rock ESS Assets, has entered a new term loan facility with First Citizens Bank as lead arranger and lender to refinance its Big Rock asset.
The 200 MW / 400 MWh Big Rock project in California, operational for nearly a year, now carries a facility sized to its operating cash flow rather than its earlier construction-stage terms.
The new facility, including a letter of credit facility of approximately $52.4 million, runs for five years and replaces the project's existing $60.0 million facility, with interest charged at a lower cost of debt.
The loan partially amortises over its term, with a balloon payment due at maturity.
The Company's gearing policy remains unchanged, targeting borrowings of no more than 30% of gross asset value.
"This refinancing lowers the cost of debt on Big Rock and demonstrates the progress we are making on our strategic initiatives to reduce costs," said Alex O'Cinneide, chief executive of Gore Street Investment Management, the Company's investment manager.