News Column

FIRST SOLAR, INC. FILES (8-K) Disclosing Other Events

August 28, 2014



Item 8.01 Other Events.

On August 22, 2014, Parque Solar Fotovoltaico Luz Del Norte SpA (the "Project Company"), a sole shareholder corporation organized and existing under the laws of Chile and an indirect wholly-owned subsidiary of First Solar, Inc. ("First Solar"), entered into a credit facility with the Overseas Private Investment Corporation ("OPIC"), an agency of the United States of America, and the International Finance Corporation, an international organization established by Articles of Agreement among its member countries ("IFC", and together with OPIC, the "Senior Lenders") to provide limited-recourse senior secured debt financing in an aggregate principal amount of up to $290,000,000 for the design, development, financing, construction, testing, commissioning, operation and maintenance of an approximately 141 MW photovoltaic power plant located near CopiapÓ, Chile (the "Project").

Up to $230,000,000 of the aggregate principal amount of the loans will be funded by OPIC. Of the OPIC commitment, $178,000,000 is currently committed, while the remaining $52,000,000 is subject to the occurrence of certain future events, including the execution by the Project Company of a power purchase agreement acceptable to each Senior Lender. The currently committed OPIC commitment is comprised of (i) fixed rate loans in an aggregate principal amount of up to $133,300,000 and (ii) variable rate loans in an aggregate principal amount of up to $44,700,000. The fixed rate loans will mature on September 15, 2029, and the variable rate loans on September 15, 2032.

Up to $60,000,000 of the aggregate principal amount of the loans will be funded by IFC. The IFC commitment is comprised of (i) fixed rate loans in an aggregate principal amount of up to $44,932,584 and (ii) a variable rate loan in an aggregate principal amount of up to $15,067,416. The fixed rate loans will mature on September 15, 2029, and the variable rate loan on September 15, 2032.

The OPIC and IFC loans are secured by liens over all of the Project Company's assets and by a pledge of all of the equity interests in the Project Company. The financing agreements include customary representations and warranties, covenants and events of default for credit facilities offered by the Senior Lenders.

On August 22, 2014, the Project Company also entered into an approximately $65,000,000 credit facility (the "VAT Facility Agreement") with Banco de CrÉdito e Inversiones (the "VAT Lender") to fund Chilean value added tax incurred in connection with the construction of the Project. In connection with the VAT Facility Agreement, First Solar provided a guaranty in favor of the VAT Lender, guaranteeing substantially all payment obligations of the Project Company under the VAT Facility Agreement.

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Source: Edgar Glimpses


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