The refinancing of Solör Bioenergi Group’s long-term debt was awarded Refinancing of the Year in Europe. The transaction won judges over with the innovative nature of the debt package and the impact the refinancing had on the company.  

The Swedish renewable district heating and biomass company raised SEK22 billion ($2.1bn) in long-term debt with a multi-tiered structure. 

The new group finance is based on an inaugural investment-grade rated common terms agreement (CTA) with international banks and institutional investors to boost the district heating provider’s war chest. 

The financing package – including refinancing of existing facilities – is structured as: 

• senior common terms agreement
• midco common terms agreement
• junior facility
• capex facility and revolving credit – a total of SEK4 billion 

One judge said: “This is one of the high quality, comprehensive submissions, clearly demonstrating the impact of the refinancing on the company and the market.” 

While another member of the independent judging panel said: “The refinancing has significantly strengthened Solor’s financial flexibility for M&A driven growth strategy. The innovative nature of the Solor’s Green Framework sets the transaction apart. As mentioned in the submission, the refinancing has solidified the company’s position as a leading provider of renewable district heating, serving over 900,000 people across Sweden, Norway, and Poland. 

“The transaction has also set a precedent for several other Nordic and European DH operators seeking to refinance, and following the transaction a spur of activity commenced where other operators saw what potentially could be achieved.” 

Solör Bioenergy is owned by: 

• Nordic Infrastructure, wholly-owned subsidiary of BE Bio Energy Group – 60%
• Polhem Infra – 40% 

Advisers on the refinancing: 

• CIBC – financial 
• Icecapital Securities – financial 
• Kirkland & Ellis – legal to borrower
• Latham & Watkins – legal to lenders