Detroit Renewable Energy Completes Financing
DETROIT (WWJ) — Detroit Renewable Energy LLC Monday announced it has completed $55 million in long-term financing to support the company’s expanding investment in the environmental, renewable energy and economic development infrastructure of Greater Detroit.
The financing consists of tax-exempt Limited Obligation Revenue Bonds with maturities extending to 2030. The bonds were issued by the Michigan Strategic Fund and are guaranteed by DRE assets and future revenues.
DRE Chairman Steven A. White said that “this financing milestone … brings substantial new resources to the long-term energy security, environmental health, and economic sustainability of Greater Detroit. With the ongoing commitment of local industry, this is the type of effort that will help accelerate the resurgence of this great city.”
DRE’s four businesses — Detroit Thermal LLC, a district heating system that provides cost-efficient, environmentally-friendly heating to more than 145 commercial customers in Detroit’s central core; Detroit Renewable Power LLC , an energy-from-waste facility that processes up to 3,300 tons per day of municipal solid waste into clean energy in the form of electricity sold to Detroit Edison, steam sold to DT, and nearly 40,000 tons per year of recycled metals; Detroit Renewable Cooling LLC , a new subsidiary created to provide district cooling services to buildings in the City of Detroit; and Hamtramck Energy Services LLC , which provides power block operating and maintenance services to industrial centers, including several General Motors buildings in Michigan.
The financing significantly extends DRE’s commitment to provide Detroit and surrounding municipalities with safe, cost-effective energy and waste disposal solutions. After investing more than $60 million since 2010 to acquire the operating businesses and for capital improvements to its network of facilities, DRE will employ the new financing to continue improvements at its facilities, expand services to new businesses and industries, and fund ongoing operations.
Detroit Renewable Energy is a part of Atlas Holdings LLC, an industrial holding company with worldwide operations employing approximately 10,000 people. Familiar to Michigan industry, Atlas successfully managed the 2002 turnaround of Michigan Seamless Tube, bankrupt when purchased by Atlas but now a thriving company.
“We are deeply committed to Detroit Renewable Energy and the opportunity for economic growth it offers the people, communities, and businesses of Detroit,” said Atlas Partner Edward J. Fletcher.