SolaREIT Expands Revolving Credit Facility to $60 Million with Atlantic Union Bank and EagleBank

Rhea-AI Summary

SolaREIT, a solar and battery storage real estate investment company, has expanded its revolving credit facility to $60 million through increased commitment from Atlantic Union Bank (NYSE: AUB) and syndication to EagleBank (NASDAQ: EGBN). This marks the third upsize in less than two years, with Atlantic Union Bank serving as the sole book runner and administrative agent.

The expanded facility will provide SolaREIT with additional capital to meet growing demand from solar and battery energy storage developers. The company offers innovative financing solutions to help developers and landowners maximize their real estate assets while supporting clean energy deployment. The expansion reflects growing market confidence in SolaREIT's business model and increasing demand for solar and storage land financing solutions.

Positive

• Credit facility expanded to $60 million, indicating strong financial backing
• Third successful upsize in less than two years demonstrates growing market confidence
• Partnership with two established banks (AUB and EGBN) strengthens financial position

Negative

• None.

Insights

Commercial Banking Specialist

EagleBank's syndication in SolaREIT's $60 million revolving credit facility represents a strategic expansion of their commercial lending portfolio into the renewable energy sector. This marks the third upsize of this facility in under two years, suggesting strong performance metrics for the underlying solar and battery storage real estate assets being financed.

From a lending perspective, this type of financing typically offers banks multiple revenue streams: interest income on drawn balances, commitment fees on undrawn portions, and potential arrangement fees. Solar and storage projects generally feature long-term contracts with predictable cash flows, which translates to favorable risk-adjusted returns for lenders like EagleBank.

The syndicated structure allows EagleBank to diversify risk while still gaining exposure to the clean energy transition. While the specific commitment amount from EagleBank isn't disclosed, the partnership demonstrates the bank's ability to participate in sophisticated commercial financing arrangements in growth sectors. Atlantic Union Bank's leadership role as administrative agent indicates they likely hold the larger position, with EagleBank taking a syndicate participant role.

For investors, this represents a modest positive strategic development, though its financial impact is likely immaterial given EagleBank's overall loan portfolio size. The deal demonstrates normal course business development activity rather than a transformative transaction, but positions the bank in a sector with significant long-term growth potential.

Third Upsize in Less Than Two Years Demonstrates Strong Market Confidence: Competitive Cost of Land Capital Benefits Solar and Storage Developers Across the Country

VIENNA, Va., March 13, 2025 /PRNewswire/ -- SolaREIT™, the leading solar and battery storage real estate investment company, announced today the expansion of its revolving credit facility to $60 million through an increased commitment from Atlantic Union Bank (NYSE: AUB) and the syndication to EagleBank (NASDAQ: EGBN). Atlantic Union Bank served as the sole book runner and administrative agent for the facility, leading the structuring and syndication efforts.

This marks the third upsize of the facility in less than two years, reflecting growing confidence in SolaREIT's business model and the increasing demand for solar and storage land financing solutions. The facility provides SolaREIT with additional capital to meet growing demand from solar and battery energy storage developers. The company's innovative financing solutions help developers and landowners maximize the value of their real estate assets while advancing clean energy deployment.

"We're thrilled to be partnering with Atlantic Union Bank and EagleBank to provide financing solutions to clean energy developers. This expanded facility demonstrates the financial community's confidence in our business model and team," said Laura Klein, CFO of SolaREIT. "As the clean energy transition accelerates, developers need reliable, flexible financing solutions. This increased capital allows us to continue scaling our support for solar and storage projects across the country."

"This third expansion of SolaREIT's credit facility demonstrates both their excellent execution and the robust demand for solar and storage land financing," said John Lester, SVP and commercial relationship manager at Atlantic Union Bank. "We're proud to continue growing our partnership with a company that's helping accelerate clean energy deployment through innovative real estate solutions."

"Eagle Bank recognizes the crucial role that innovative financing plays in advancing clean energy development," said Toby Haggerty, SVP and C&I relationship manager at EagleBank. "SolaREIT's unique approach to renewable energy real estate financing makes them an ideal partner, and we're excited to support their continued growth."

Solar and battery storage development require significant real estate investment. SolaREIT partners with developers and landowners to provide capital solutions that optimize land value and support project development. The company's practical, streamlined financing options deliver maximum flexibility based on clients' individual needs, financial goals, and vision for their land.

About SolaREIT™

SolaREIT™, based in Virginia, is an innovative renewable energy real estate company focused on delivering financing solutions for solar and battery energy storage developers. SolaREIT, a minority and women-owned business, was founded in 2020 as a Real Estate Investment Trust (REIT) by clean energy industry veterans with a proven track record in finance, project development, real estate, and community solar. The team is passionate about renewable energy and believes that solar and battery energy storage land financing plays a critical role in expanding the clean energy economy.

About Atlantic Union Bank

Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (NYSE: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank had 129 branches located throughout Virginia and in portions of Maryland and North Carolina as of December 31, 2024. Certain non-bank financial services affiliates of Atlantic Union Bank include: Atlantic Union Equipment Finance, Inc., which provides equipment financing; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

About Eagle Bancorp, Inc. and EagleBank

Eagle Bancorp, Inc. is the holding company for EagleBank, which commenced operations in 1998. EagleBank is headquartered in Bethesda, Maryland, and conducts full service commercial banking through 12 offices, located in Suburban, Maryland, Washington, D.C. and Northern Virginia. EagleBank focuses on building relationships with businesses, professionals and individuals in its marketplace.

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SOURCE SolaREIT

FAQ

What is the new size of SolaREIT's revolving credit facility after the expansion with EGBN?

SolaREIT's revolving credit facility has been expanded to $60 million through increased commitment from Atlantic Union Bank and syndication to EagleBank.

How many times has SolaREIT's credit facility been upsized in the past two years?

The credit facility has been upsized three times in less than two years, demonstrating growing market confidence in SolaREIT's business model.

What role does EagleBank (EGBN) play in SolaREIT's expanded credit facility?

EagleBank joined the credit facility through syndication, partnering with Atlantic Union Bank to provide expanded financing for SolaREIT's solar and storage land financing solutions.

How will the expanded credit facility with EGBN benefit solar developers?

The expanded facility provides additional capital for developers to access flexible financing solutions for their real estate assets, supporting solar and battery storage project development.