KKR Thor Intermediateco

Clearway Community Energy (CCE) District Heating Portfolio - Acquisition Financing

Industry
Infrastructure/District heating
Area of finance
Project & Infrastructure Finance
Region
North America
Countries
United States

Deal Overview

Clearway Energy closed the $1.9 billion (inclusive of project level debt) sale of its thermal business – Clearway Community Energy (CCE) – to KKR earlier this week, seven months after signing definitive sale documentation in October 2021.CCE operates 13 district energy systems that...

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Clearway Energy closed the $1.9 billion (inclusive of project level debt) sale of its thermal business – Clearway Community Energy (CCE) – to KKR earlier this week, seven months after signing definitive sale documentation in October 2021.

CCE operates 13 district energy systems that provide steam, chilled water, hot water and power to customers in 11 cities across the US. BofA Securities and TD Securities served as financial advisors to Clearway for the sale, and Morgan Stanley was financial advisor to KKR.

The acquisition is backed by a $660 million five-year debt facility structured via borrowing vehicle KKR Thor Intermediateco. The deal comprises three tranches: a $300 million term loan, a $200 million delayed draw term loan and a $160 million RCF. Lead arrangers and joint lead bookrunners are BNP Paribas, ING Capital, MUFG, National Bank of Canada and KKR Capital Markets. Mizuho acted as administrative agent. Milbank provided lender counsel and Kirkland & Ellis acted for the borrower on both the debt-raising and the acquisition.

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Deal Volume
$ 660m
Financial Close
05 May 2022
Sources

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Tranches


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Projects

Clearway Community Energy (CCE) District Heating Portfolio

Brownfield
District heating
North America
United States
$ 1.9bn