Renovate America, a leading U.S. provider of Property Assessed Clean Energy financing, obtained an additional $40 million of borrowing capacity in a bank credit facility.
In a press release Thursday, the company said a second bank M&G Prudential, had joined the deal agent, ING Capital, doubling capacity to $80 million.
Adding a syndicate partner “bolsters Renovate America's financial position with enhanced liquidity and further diversifies the company's funding profile,” the press release stated.
PACE allows homeowners and business to borrow against the equity in their homes in order to make energy or water efficiency upgrades such as replacing windows and doors, upgrading their HVAC or installing solar panels. The funds are repaid through a voluntary assessment repaid on tax bills. Like other kinds of property taxes, the lien that is created is senior to that of a mortgage.
Renovate America will use the additional funding capacity to expand its HERO program, which is already the nation's most widely used PACE product. Since launching six years ago, HERO financing has been used to make energy, efficiency and resiliency improvements across more than 110,000 homes in California, Florida and Missouri.
In addition to HERO, Renovate America also finances home improvements through an unsecured lending product, Benji.