Alterra Power Corp. and Inovateus Solar LLC announced Aug. 8 that they had secured a $19.9 million construction loan facility from 1st Source Bank for a planned 11-MW solar project in Michigan.
The facility consists of a $19.8 million construction loan and a $500,000 letter of credit, according to an Aug. 8 news release. Along with the construction loan facility, 1st Source Bank is also providing a $9.7 million tax equity investment commitment and a $10.2 million term loan commitment, which will be used to pay back the construction loan once the Spartan PV solar facility begins operations.
The term loan will have a balloon payment based on 6-year maturity and 20-year amortization.
Separately, Alterra said it completed a partnership agreement with Inovateus under which Alterra will hold a majority interest of at least 85% in the Ingham County solar project, and will manage it.
The Spartan facility is expected to begin commercial operations in December and will sell all of its power to Michigan State University under a 25-year power purchase agreement.