Just Energy Group Inc. (JE.TO)(JE) is pleased to announce that its subsidiary's solar business (Hudson Energy Solar), has entered into financing arrangements with Seminole Financial Services, LLC (Seminole) and another institutional lender. The initial funding is for several solar projects under development in New Jersey. This financing arrangement will allow Hudson Energy Solar to complete the projects as well as utilize much of the tax incentives available for renewable energy projects.
As part of the financing, Seminole has provided construction financing of approximately $12 million and a debt facility of approximately $6.5 million. Additionally, as part of the structure, an institutional lender has provided an aggregate investment of approximately $7 million with respect to the projects. The Seminole construction loan will be repaid from the proceeds of the permanent debt facility and the institutional investment. The financing structure has the capability to be used to support additional solar projects, supporting the continued growth of Hudson Energy Solar.
Ken Hartwick, Just Energy's President and CEO states "We are very pleased to have closed this funding arrangement and are excited for the continued development of our solar projects. These projects will provide clean, efficient, and reliable solar electric power to elementary, middle and high schools located in New Jersey."
CohnReznick LLP acted as an advisor to Hudson Energy Solar on the transaction.