OPAL Fuels Inc. (OPAL): debt financing — OPAL Fuels funds RNG projects via $85M delayed-draw term loan in 50/50 JV Paragon RNG

OPAL Fuels Inc.

On May 30, 2023, OPAL contributed Sapphire and Emerald RNG interests to Paragon RNG LLC, a 50/50 JV with a third-party environmental solutions company; indirect ownership unchanged.
Paragon RNG borrowed up to $85M (delayed-draw term loan) and $10M (DSR facility) under amended credit agreement maturing May 30, 2028; $18.5M drawn at closing for Emerald construction.
Interest rate: Term SOFR +3.50% pre-conversion (June 30, 2024 or earlier) and +3.75% thereafter; quarterly amortization of 2.5% starts Sep 30, 2024.
Loans are non-recourse to OPAL Fuels Inc.; secured by Paragon and project assets; requires minimum debt service coverage ratio of 1.2:1.0.
Proceeds used for construction of Sapphire and Emerald renewable natural gas projects; previous credit agreement fully replaced.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

OPAL Fuels Inc. incurred credit facility of up to a maximum aggregate principal amount of $85.0 million with Bank of Montreal at adjusted Term SOFR plus 3.5% to 3.75% maturing May 30, 2028.

Instrument: credit facility
Principal: up to a maximum aggregate principal amount of $85.0 million
Counterparty: Bank of Montreal
Rate: adjusted Term SOFR plus 3.5% to 3.75%
Maturity: May 30, 2028
Event: incurrence

Exact text from the filing

The Credit Agreement provides for an approximately two-year delayed term loan facility (the “DDTL Facility”) of up to a maximum aggregate principal amount of $85.0 million and a debt service reserve facility (the “DSR Facility”) of up to a maximum aggregate principal amount of $10.0 million.

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Source: SEC EDGAR

accession 0001842279-23-000054

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