I Squared Capital’s Cube Hydro Platform closes $140 million bond issuance

Cube Hydro North America I, LLC, a wholly-owned subsidiary of Cube Hydro Partners, LLC, which is a portfolio company of I Squared Capital, has successfully closed on the issuance of $140 million Senior Secured Notes due October 2025. The Notes were placed through a private placement launched on September 15, 2015.

The Notes received an investment grade rating and were priced at a 4.75% coupon which is payable semiannually in April and October commencing in April 2016. 

Kristina Johnson, CEO of Cube Hydro, stated:

“The response from investors exceeded our expectations and demonstrates our ability to raise low-cost financing to support investments in clean, carbon-free hydroelectric generation. Investors continue to show a strong appetite for attractive investment opportunities in clean energy such as our hydroelectric generation portfolio.”

Cube Hydro, a portfolio company of the ISQ Global Infrastructure Fund and its affiliated funds, was founded in January 2014 to develop, acquire and operate a platform of small to mid-sized hydropower plants located in North America, primarily in the United States.

Cube Hydro currently owns a portfolio of thirteen hydroelectric plants with a capacity of 106 megawatts located in New York, Pennsylvania, Virginia and West Virginia with expected annual generation of over 340,000 MWhs. Prior to the issuance of the Notes, the portfolio was funded nearly 100 percent with equity.

Cube Hydro will use the proceeds from the Notes to optimize its existing capital structure, fund business requirements and return capital to its equity owners.

Barclays acted as sole placement agent and financial advisor to Cube Hydro. Orrick, Herrington & Sutcliffe and Chapman & Cutler provided legal advice to Cube Hydro and to the investors, respectively.