FIRST SOLAR, INC. (NASDAQ:FSLR) Files An 8-K Other EventsItem 8.01.Other Events
On November 30, 2018, Royal Solar GK (the “Project Company”), a limited liability company organized and existing under the laws of Japan and an indirect wholly-owned subsidiary of First Solar, Inc., entered into a credit agreement with Shinsei Bank, Ltd. (the “Credit Facility”). The Credit Facility provides for aggregate borrowings up to ¥11.8 billion ($104 million) for the development and construction of a 25 MWAC photovoltaic power plant located in Gunma, Japan.
The Credit Facility consists of a ¥10.5 billion ($93 million) term loan facility, a ¥0.9 billion ($8 million) consumption tax facility, and a ¥0.4 billion ($4 million) debt service reserve facility. The term loan facility and the debt service reserve facility bear interest at 6-month Tokyo Interbank Offered Rate (“TIBOR”) plus 0.65%, and the consumption tax facility bears interest at 6-month TIBOR plus 0.50%. Interest on the term loan facility and the debt service reserve facility is payable bi-annually, and interest on the consumption tax facility is payable quarterly. Principal on the term loan facility is payable in scheduled bi-annual installments from September 2020 to the maturity of the facility in September 2038. The debt service reserve facility also matures in September 2038. The consumption tax facility is expected to mature in 2021. The Credit Facility is secured by pledges of the Project Company’s assets, accounts, material project documents, and by the equity interests in the Project Company. The Credit Facility contains customary representations and warranties, covenants, and events of default for comparable term loan facilities in Japan.
About FIRST SOLAR, INC. (NASDAQ:FSLR)
First Solar, Inc. is a provider of photovoltaic (PV) solar energy solutions. The Company designs, manufactures and sells PV solar modules with thin-film semiconductor technology, and also develops, designs, constructs and sells PV solar power solutions. The Company operates through two segments: components and systems. The Company’s components segment designs, manufactures and sells solar modules, which convert sunlight into electricity. The Company’s systems segment provides PV solar power systems or solar solutions for systems, which use the Company’s solar modules. The Company provides operations and maintenance (O&M) services to plant owners that use solar modules manufactured by the Company or by other third-party manufacturers. The Company has approximately 30 manufacturing lines around the world and over 2.8 gigawatts (GW) of annual manufacturing capacity with lines having a production capability of approximately 2,500 modules per day.