Apr 05, 2022

​Marathon Capital Advises MAS Energy, Renewable Natural Gas Developer, on a $206M Private Placement Debt Facility

Marathon Capital, LLC (“Marathon Capital”) has announced that an affiliate of MAS CanAm, LLC (“CanAm”), the holding company for all of the Renewable Natural Gas (“RNG”) activities undertaken by MAS Energy, LLC (“MAS Energy”) has closed a $206M debt facility from Pacific Life, Nuveen and IFM Investors. The financing was committed in December 2021 with closing subject to a number of conditions precedent. Marathon Capital acted as exclusive financial advisor to CanAm. MAS Energy is a privately held, Atlanta-based owner, developer, and operator of North American RNG production assets and biomethane-to-power facilities.

MAS Energy brings significant experience to the biomethane-to-energy sector. MAS Energy has been involved in 21 projects since 2008. CanAm’s current operating portfolio, operated by an affiliate of MAS Energy, consists of five facilities, including a 5,100 scfm RNG production facility at the City of Arlington Landfill.

Marathon Capital was engaged to raise debt via Private Placement to fund the construction of a development portfolio of five biomethane to RNG plants. Marathon worked closely with MAS Energy to prepare the marketing materials, financial model, rating agency presentation and supplemental marketing materials and in assisting the Issuer in obtaining an Investment Grade rating. The Private Placement was structured as Senior Secured and HoldCo Debt to maximize leverage and is supported by long term fixed price contracts with investment grade rated counterparties.

The clear ESG investment thesis and the opportunity to participate in the fast-growing RNG space, combined with a premier developer coupled with long-term offtake agreements with high quality counterparties garnered significant interest from investors. The book was three times oversubscribed and the bonds priced inside price talk.

“We were very pleased with the strong reception for our financing. We specifically targeted US private placement investors because of their experience and expertise in project finance and their willingness and ability to evaluate new and emerging asset classes and markets. We are thrilled to be working with three best-in-class private placement investors and are extremely pleased with the outcome of the transaction.”–Steve Anderson, Principal MAS Energy

“It has been a pleasure to work with MAS Energy on this financing. The investor interest in a first-of-its-kind debt private placement for construction and long-term debt for RNG assets opens a new path forward to financing future RNG projects. We look forward to continuing our relationship with MAS as they develop their RNG business.” – Gary Greenblatt, Senior Managing Director & Co-head of NYC, Marathon Capital

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About MAS Energy
MAS Energy is a fully integrated investment, development and asset management organization that delivers creative and value-added resource solutions to utilities, private sector companies, co-operatives, and municipalities. MAS Energy discovers, develops, owns and operates efficient, distributed clean-energy generation systems that utilize combined heat and power, renewable natural gas, reciprocating engine simple-cycle technology and district energy systems. MAS Energy’s projects provide significant social, environmental, and economic value by reducing emissions, lowering carbon footprint and enhancing the overall reliability of energy infrastructure. For more information, visit http://mas-energy.com/