PowerBank Strengthens Balance Sheet and Solar Portfolio with 14% Reduction in Project Debt with Completion of CA$25.4M Refinancing
Refinancing across 53 operating solar projects expected to release approximately CA$5.0 million in net cash to PowerBank Consolidates...
- PowerBank finished a CA$25.4 million refinancing of 53 operating solar projects, cutting outstanding project loan principal by about CA$4.2 million, or 14%.
- The deal merges 50 credit agreements across three lenders into one with a major Canadian bank, and is expected to lower debt payments, banking fees and admin costs.
- PowerBank expects about CA$5.0 million in net cash and plans to take over operations and maintenance for 49 projects to lower costs and gain control.
Refinancing across 53 operating solar projects expected to release approximately CA$5.0 million in net cash to PowerBank
Consolidates 50 credit agreements into one facility with a major Canadian bank, with lower scheduled debt payments, banking fees and administrative costs expected
PowerBank to bring operations and maintenance of 49 solar projects in-house, supporting lower operating costs and greater operational control
This news release constitutes a “designated news release” for the purposes of the Company’s prospectus supplement dated June 5, 2025 to its short form base shelf prospectus dated May 7, 2025
PowerBank Corporation (NASDAQ: PBK) (Cboe CA: PBK) (FSE: 103) (“PowerBank” or the “Company”), a vertically integrated independent North American energy company, today announced the completion of a CA$25.4 million project-level refinancing that reduces outstanding project loan principal by approximately CA$4.2 million, or 14%. The transaction is expected to release approximately CA$5.0 million in net cash to PowerBank, reduce scheduled debt payments and simplify financing administration across 53 operating solar projects (the “Projects”).
The refinancing covers projects held across 14 project companies and consolidates 50 credit agreements across three lenders into a single agreement with a major Canadian bank. The new facility replaces approximately CA$29.6 million in outstanding principal and borrowings remain at the project-owning subsidiary level.
The Company expects the consolidated financing structure to lower scheduled quarterly debt payments, banking fees and administrative costs, supporting cash flow from its operating solar portfolio.
Expected cash release supports financial flexibility
The transaction is funded through the new facility and an approximately CA$1.5 million closing contribution from PowerBank. Approximately CA$5.9 million in existing reserve and lockbox funds are expected to be released following closing. Together with approximately CA$543,000 received from unwinding interest rate swaps associated with 45 existing loans, these funds are expected to provide approximately CA$5.0 million in net cash after PowerBank’s closing contribution, reserve account funding and closing costs.
Bringing Operations and Maintenance in-house
PowerBank will assume operations and maintenance (“O&M”) responsibilities for 49 of the Projects, which the Company expects will reduce project-level operating costs and provide greater control over maintenance planning and operating performance. Under an agreement with the existing third-party O&M provider, PowerBank will provide a full and final release of that provider’s obligations.
The refinancing reflects PowerBank’s continued focus on strengthening its Balance Sheet and IPP portfolio of operating assets, which generate long-term contracted revenue, while supporting the Company’s growth across its development pipeline in Canada and the United States.
About PowerBank Corporation
PowerBank Corporation is an independent renewable and clean energy project developer and owner focusing on distributed and community solar projects in Canada and the USA. The Company develops solar and Battery Energy Storage System (BESS) projects that sell electricity to utilities, commercial, industrial, municipal and residential off-takers. The Company maximizes returns via a diverse portfolio of projects across multiple leading North America markets including projects with utilities, host off-takers, community solar, and virtual net metering projects. The Company has a potential development pipeline of almost one gigawatt and has developed renewable and clean energy projects with a combined capacity of over 100 megawatts built. To learn more about PowerBank, please visit www.powerbankcorp.com.
Source : PowerBank Corporation
With an aim to contribute to the development of Canada’s Small and Medium Enterprises (SME’s), Cmarketing Inc is a potential marketing agency and a boutique business management company progressing rapidly in its scope. By acknowledging a firm reliance of the Canadian economy over its SMEs, the agency has resolved to launch a magazine, the pure focus of which will be the furtherance of Canadian SMEs, and to assist their progress with the scheduled token of enlightenment via the magazine’s pertinent content.
View profile →
