Greenbacker Renewable Energy Company entered into a credit agreement with Fifth Third Bank as administrative agent, as sole lead arranger and sole lead bookrunner, as well as swap counterparty. The new credit facility consists of a loan of up to the lesser of $60,000,000 or a borrowing base amount based on various solar projects that act as collateral for the credit facility, of which approximately $25.7 million was drawn down at closing. The Credit Facility allows for additional drawdowns through December 31, 2018, at which point the outstanding loans shall convert to a term loan, and matures on January 5, 2024.

The Company will use the net proceeds of borrowings under the Credit Facility to repay amounts outstanding under previously existing project loans with a quasi-governmental agency and term loans under a prior facility with the Bank, for investment in additional alternative energy power generation assets and for other general corporate purposes. Loans made under the Credit Facility bear interest at 2.125% in excess of one-month LIBOR. Until the Credit Facility converts to a term loan, quarterly commitment fees on the average daily unused portion of the Credit Facility are payable at a rate per annum of 0.50%. In addition to the Credit Facility, the Borrower has entered into an interest rate swap to hedge the variable interest rate risk on a portion of the Credit Facility, with current plans to fully hedge the exposure.

Borrowings under the Credit Facility are secured by the assets, cash, agreements and equity interests in the Borrower and its subsidiaries. The Company and Greenbacker Renewable Energy Corporation are guarantors of the Borrower’s obligations under the Credit Facility and Greenbacker Renewable Energy Corporation has pledged the equity interests of Borrower as collateral for the Credit Facility.

The Credit Facility contains certain affirmative and negative covenants including negative covenants that limit or restrict, among other things, dividends from Borrower to the Company, secured indebtedness, mergers and fundamental changes, asset sales, investments and acquisitions, liens and encumbrances, transactions with affiliates, burdensome agreements, and other matters customarily restricted in such agreements.