FRAMINGHAM, Mass. - Ameresco, Inc. (NYSE:AMRC), a prominent cleantech integrator and renewable energy company, has confirmed the acquisition of a $100 million second lien debt financing from Nuveen Energy Infrastructure Credit. The transaction, completed to bolster Ameresco's growth ambitions, provides the firm with a solid financial base and favorable terms.
According to the company's Chief Financial Officer, Doran Hole, the partnership with Nuveen is a result of the company's search for inventive debt capital solutions. Ameresco plans to continue investing in its development pipeline and pursue strategic acquisitions aimed at delivering returns that surpass its capital costs.
Hole emphasized that the advantageous interest rates and the extended duration of the debt support Ameresco's expansion strategies and mark the beginning of a potentially beneficial relationship with Nuveen.
Nuveen's Portfolio Manager, Don Dimitrievich, expressed enthusiasm about supporting Ameresco, noting the alignment with Nuveen's core business of backing leading energy efficiency and renewable energy operators.
The financing will not affect Ameresco's leverage for the quarter ending June 30, 2024, as it was used to pay off the remaining balance of the company's Delayed Draw Term Loan A and to reduce the outstanding balance on its senior secured revolving credit facility.
The company expressed gratitude to its Senior Secured Lenders and Nuveen for their roles in completing the transaction, which has been formalized through the 6th Amendment to Ameresco's Senior Secured Credit Facility. Details of the agreement and the amendment have been filed with the SEC on Form 8-K on July 1, 2024.
Oppenheimer & Co. served as the Lead Arranger for the financing deal.
Ameresco, founded in 2000 and based in Framingham, MA, has a broad portfolio that includes energy efficiency, infrastructure upgrades, and the development and operation of distributed energy resources. The company has completed projects across various sectors, including federal, state, and local governments, utilities, healthcare, and educational institutions.
This financial development is based on a press release statement.
In other recent news, Ameresco, a cleantech integrator, has been involved in several major projects and positive financial developments.
The company has embarked on a $33 million energy efficiency project at the U.S. National Archives and Records Administration facilities, which is expected to yield about $2 million in annual savings. In collaboration with Envision Energy, Ameresco is also constructing a significant battery energy storage system in the United Kingdom, a project valued at approximately $249 million.
Additionally, Ameresco has partnered with the City of Henderson to overhaul its streetlight system with a $21 million design-build project. On the financial front, Baird has raised the price target for Ameresco shares following a strong Q1 performance, which included a 10% revenue increase to $298 million and a project backlog surpassing $4 billion.
These developments highlight Ameresco's recent activities and growth in the cleantech sector.
InvestingPro Insights
Ameresco, Inc. (NYSE:AMRC) has recently secured a substantial financing deal to propel its growth, and while the future looks promising, a look at the company through InvestingPro's lens reveals a mixed financial landscape. Ameresco's current Market Cap stands at $1.51 billion, with a Price to Earnings (P/E) Ratio of 25.71, indicating that investors are expecting higher earnings in the future.
Despite a challenging revenue decline of 13.54% over the last twelve months as of Q1 2024, Ameresco's quarterly revenue growth shows a positive uptick of 10.1%. This suggests that the company may be on a path to recovery, aligning with its strategic investments and growth plans. However, an InvestingPro Tip points out that Ameresco is quickly burning through cash, which could be a concern for investors looking at the company's ability to sustain its growth without further leveraging its financial position.
Moreover, Ameresco's recent price volatility is reflected in a 21.11% drop in its stock price over the last month, yet it has managed a strong return of 15.29% over the last three months. This volatility could be a point of caution for potential investors. Additionally, with analysts revising their earnings expectations downwards for the upcoming period, it's crucial to keep an eye on Ameresco's performance in the near term.
For those considering an investment in Ameresco, or for current shareholders seeking deeper insights, there are additional InvestingPro Tips available that could help in making a well-informed decision. Ameresco has a total of 14 InvestingPro Tips, which include analysis on aspects such as its debt burden, valuation multiples, and profitability forecasts.
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