Clearway Energy Operating LLC, a wholly‑owned subsidiary of Clearway Energy, Inc., will issue $500 million of senior unsecured notes due 2034. The 10‑year notes will be sold to qualified institutional buyers under Rule 144A and are guaranteed by Clearway Energy and its subsidiaries.
The proceeds will be used to refinance the company’s existing revolving credit facility debt and to fund acquisitions of renewable‑energy generation and storage assets, including wind, solar, and battery projects. The financing also supports planned repowering initiatives and other growth projects that align with Clearway’s strategy to expand its contracted clean‑energy portfolio.
Clearway’s balance sheet shows a debt‑to‑equity ratio of 4.5 and an Altman Z‑Score of 0.41, indicating a high leverage position. However, the company has maintained strong EBITDA margins and positive cash flow from operations, and it has reduced debt levels in 2024 compared with 2023. The new notes are intended to lower the company’s cost of capital, improve liquidity, and preserve cash‑flow generation while enabling continued expansion.
Management highlighted that the lower‑cost financing will allow Clearway to accelerate asset acquisitions and repowering projects without compromising its ability to fund growth through retained earnings. The company’s long‑term focus on renewable generation and storage is reinforced by the capital structure adjustment, positioning it to capture opportunities in a market that continues to favor clean‑energy assets.
The $500 million senior notes represent a significant capital‑structure adjustment that balances the need for growth capital with the imperative to manage debt levels. By securing a long‑term, lower‑cost financing instrument, Clearway aims to strengthen its balance sheet and support its expansion strategy in the renewable‑energy sector.
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