Pattern Energy Offering the Biggest Green Junk Bond Since 2017

Pattern Energy Operations LP is raising $700 million to help finance sustainable projects, the biggest green high-yield bond sale since 2017.

The San Francisco-based company, a wholly-owned subsidiary of Pattern Energy Group LP, is offering senior unsecured notes maturing in eight years, according to a person with knowledge of the matter. Royal Bank of Canada, BMO Financial Group and Citigroup Inc. are managing the transaction, the person said.

Pattern’s deal is the biggest environmentally friendly junk note sale since utility services provider Greenko Dutch BV tapped the U.S. high-yield market for $1 billion of green bonds in 2017, according to data compiled by Bloomberg. High-yield companies have borrowed about $850 million to fund sustainable projects this year, lagging behind blue-chip companies, which have issued nearly $100 billion.

Funds raised from Pattern Energy’s debt offering will help fund green projects, including equipment and systems which generate or facilitate the generation of energy from renewable sources like solar and wind energy, the company said in a statement. Net proceeds will also be used to redeem Pattern Energy Group Inc.’s outstanding 5.875% senior green notes maturing 2024 and to repay a term loan in full.

Pattern says it’s delivered more than 12,000 gigawatt-hours of clean, renewable electricity to the grid last year, enough to power about 1.2 million homes, according to its website.

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