SDCL Energy Efficiency Income Trust (SEEIT) has acquired the outstanding balance of loan facilities, secured against an operational portfolio of LED-lighting projects in the United States, held by Future Energy Solutions Lighting (FES), a SEEIT portfolio company.
The loan was acquired for approximately $31 million and provides SEEIT with all the economic interest in a fully contracted portfolio comprising more than 1,500 contracts with remaining tenors of up to 13.5 years. The company was presented with this exclusive opportunity because of its equity interests in FES.
The investment creates the potential to realize operational and financial efficiencies across the FES portfolio, while on a standalone basis it benefits from strong cash-flow yields and is forecast to deliver double-digit unlevered returns. The transaction also secures the company’s access to a customer base with a strong credit record, offering future incremental investment and recontracting opportuni