preview

Met Atrium Case Study

Decent Essays

The Analyst recommends maintaining the Project’s 5+ rating. The assigned rating reflects cash flow predictability and visibility from a long-term PPA with an investment grade off-taker, equipment technology complexity, and the expected amortization of the Term Loan balance by the maturity date in 2032.
Met Atrium is comparable to Thunder Bay Solar 2 LP (“TB2”) (5+) and First Light 2 (“First Light”) (5+). Both of these solar facilities, like the Project, have long-term PPAs with the investment grade off-takers.
TB2’s operating profile is slightly better than the Met Atrium’s operating profile given TB2 has lower volume and demand volatility risk than Met Atrium. The other operating risk factors are similar for both the projects. In terms of the Financial & Structuring risk factors, TB2 has a reasonable PPA Tail compared …show more content…

The variance was largely due to a conservative approach used by the SFS EF AM in forecasting the operating expenses.
Solar insolation was slightly lower than the SFS EF AM forecast (about 1%).
Debt Service Coverage Ratio (“DSCR”) for the review period was 1.3x, somewhat below the SFS EF AM forecast of 1.5x, reflecting lower than expected net operating cash flows, largely due to lower energy output.
Given the location of the Project, the Analyst is of the opinion that strength of the solar insolation will remain relevant in the future as well and influence the energy output. Met Axium Solar Cluster 1 LP (f.k.a. Met Fiera Solar Cluster 1 LP) (“Met Axium” or the “Borrower) is composed of three solar projects: Midhurst 2 (“MH2”), Midhurst 3 (“MH3”), and Midhurst 6 (“MH6”) (the “Projects” or the “Portfolio”), all of which are located in Ontario, Canada and have an aggregate capacity of 15.5MWac. The Projects achieved COD in December, 2013 and each has a 20-year Power Purchase Agreement (“PPA”) with the Independent Electricity System Operator (“IESO”) (Aa2; SFS Equivalent

Get Access