EVgo has secured a massive, $225 million loan facility with five commercial banks in a bid to accelerate its expansion plans and add more than 1,500 new DC fast chargers to America’s EV charging landscape – and they have an option to borrow even more!
This week, EVgo announced that it has closed on a first-of-its-kind, senior secured, non-recourse credit facility with “top tier” banks for $225 million – and they have the option to increase their line of credit by $75 million more to fund additional network growth.
“This groundbreaking financing transaction sets a precedent for expanding high-power charging infrastructure by leveraging debt capital,” said Francine Sullivan, EVgo CLO & EVP Corporate Development. “Such resounding support from the global project finance bank market marks another milestone in EVgo’s plan to enhance value with our growing industry-leading fast charging solutions. We look forward to partnering with our banking partners to continue to grow our leadership position into the future.”
The credit card facility is being funded by a group of five “top tier” banks, according to EVgo, with the project being led by SMBC as Structuring Agent, Coordinating Lead Arranger, and Joint Bookrunner. Bank of Montreal, Royal Bank of Canada, and ING Bank NV are acting as the Joint Lead Arrangers and Joint Bookrunners, while Investec Bank Plc is also on, though “just” as a participating lender.
The companies involved are calling this new capital for public fast charging an important milestone that reflects both the maturity and profitability of the EVgo network, and broader confidence in the company’s management team.
“This financing demonstrates SMBC’s continued ability to lead innovative financing solutions for clients in emerging sectors across the broader infrastructure landscape,” said Juan Kreutz, SMBC Americas Head of Global Structured Finance. “We are proud to partner with an industry leader like EVgo on this pioneering financing as the company expands its network of accessible charging infrastructure throughout the US.”
Electrek’s Take
The people running EVgo are smart. They understand that the loss of the $7,500 Federal tax credit isn’t the dealbreaker it’s being made out to be, and that the demand for chargers is only going to continue to grow. What’s more, the banks have done their research, looked at the projections, and decided the odds of getting their $225-300 million were pretty good.
Glad to see it. Now, for give me – I’m off to watch The Big Short again (for unrelated reasons).
SOURCE | IMAGES: EVgo.
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