Alterra Power Corp. and Inovateus Solar LLC have secured a US$19.9 million construction loan for the 11 MW Spartan Solar project. It’s located on the East Lansing campus at the University of Michigan.
Concurrently with the construction loan, 1st Source Corp. will provide a US$9.7 million tax equity investment commitment and a US$10.2 million term loan commitment, both of which will be used to retire the construction loan facility upon achievement of commercial operations. The term loan will have a balloon payment based on a 6-year maturity and 20-year amortization.
"We're pleased to complete this second project with our solar partner Inovateus, and to complete another financing with 1st Source," said Jon Schintler, VP of project finance and development at Alterra. "We look forward to serving Michigan State University for many years and hopefully expanding our Midwest solar operations.
Separately, Alterra completed a partnership agreement with Inovateus, under which Alterra will manage the project and hold a majority interest of at least 85%.
The Spartan project is currently under construction and Alterra expects it to achieve commercial operation in December 2017. The solar project is contracted under a 25-year power purchase agreement with the Board of Trustees of Michigan State University for 100% of plant output. Construction is being managed by Inovateus, who will also provide operations and maintenance services.