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EVgo Inc. has successfully closed a significant senior secured credit facility amounting to $225 million, a move designed to accelerate the expansion of its public fast-charging network for electric vehicles (EVs) across the United States. This landmark financial agreement, the largest of its kind for a U.S. EV charging company in the commercial bank market, was oversubscribed and includes an option to increase the total financing to $300 million to support further growth.
Key Highlights
- A $225 million, 5-year senior secured credit facility has been secured with an option to increase to $300 million.
- The financing will fund the deployment of more than 1,500 additional high-power fast charging stalls nationwide.
- This represents the largest commercial bank facility for EV charging infrastructure in the United States.
- The oversubscribed facility was placed with a syndicate of five top-tier global project finance banks.
Landmark Financing for EV Infrastructure
The non-recourse credit facility provides EVgo with substantial leverage to fund growth beyond its existing financing arrangements. The deal was structured with a syndicate of leading global banks, underscoring the financial market’s growing confidence in the EV charging sector and EVgo’s leadership position within it. According to the company, the resounding support from the global project finance bank market marks a major milestone in its plan to deliver industry-leading fast charging solutions. This groundbreaking transaction sets a new precedent for leveraging debt capital to expand high-power charging infrastructure.
Accelerating Nationwide Network Growth
Proceeds from the facility are earmarked to significantly accelerate the deployment of EVgo’s charging infrastructure. The funds will support the installation of more than 1,500 new stalls, enhancing the company’s public fast charging network and expanding its dedicated charging hubs that serve autonomous vehicles and other commercial fleet partners. This strategic expansion is expected to further solidify EVgo’s position as an industry leader in public fast charging, providing more accessible and reliable options for EV drivers across the country. The company noted that this facility offers the flexibility to fund stalls that may not fall within the scope of its existing debt financing.
A Milestone for the EV Industry
Company leadership emphasized the importance of this financial milestone. Badar Khan, CEO of EVgo, stated that the facility provides low-cost capital that enables an increased infrastructure buildout, ultimately offering EV drivers more fast charging choices. He noted that the first-of-its-kind facility reflects growing confidence from financial markets in both EVgo and the future of the EV charging industry. Francine Sullivan, EVgo CLO & EVP of Corporate Development, added that the transaction marks another step in the company’s plan to enhance value. The company anticipates providing an update on its buildout expectations during its second-quarter fiscal 2025 earnings call.
Strong Support from Global Lenders
The credit facility is provided by a syndicate of world-class banks led by SMBC as Structuring Agent, Coordinating Lead Arranger, and Joint Bookrunner. Bank of Montreal, Royal Bank of Canada, and ING Bank NV served as Joint Lead Arrangers and Joint Bookrunners, with Investec Bank Plc participating as a lender. Juan Kreutz, SMBC Americas Head of Global Structured Finance, commented on the partnership, highlighting the bank’s pride in working with an industry leader like EVgo on this pioneering financing. Legal advisors for the transaction were Milbank for EVgo and Paul Hastings for the lenders.
About EVgo
EVgo (Nasdaq: EVGO) is one of the nation’s leading public fast charging providers. With more than 1,100 fast charging stations across over 40 states, EVgo strategically deploys localized and accessible charging infrastructure by partnering with leading businesses across the U.S., including retailers, grocery stores, restaurants, shopping centers, gas stations, rideshare operators, and autonomous vehicle companies. At its dedicated Innovation Lab, EVgo performs extensive interoperability testing and has ongoing technical collaborations with leading automakers and industry partners to advance the EV charging industry and deliver a seamless charging experience.
For more information, visit https://www.evgo.com/.
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