Cypress Creek Renewables has closed financing on Shakes, a 270 MW solar project located in Dimmit County, Texas.
The project is currently under construction and expects to reach commercial operation during the second half of 2022. Cypress Creek will be the long-term owner and operator of the project.
“At 270 MW, Shakes is a cornerstone project for Cypress Creek Renewables and demonstrates our commitment to executing on major projects in support of the energy transition,” says Sarah Slusser, CEO of Cypress Creek. “We’re thrilled to join forces again with Morgan Stanley, Nord/LB, and Rabobank, and new partners for us, Axpo US, Helaba, and National Bank of Canada, to complete financing on a project that will generate enough power for nearly 40,000 homes annually. As the long-term owner and operator of Shakes, we also look forward to continuing to build our relationships throughout the community.”
Morgan Stanley, through one of its subsidiaries, is the tax equity provider and Nord/LB, Rabobank, Helaba and National Bank of Canada provided the project finance debt. The energy and renewable energy credits generated by the project have been sold to Axpo US, an affiliate of Axpo Solutions, an international leader in the development of tailor-made energy solutions for its customers.
“Risk appetite and risk mitigation requirements have been evolving following the market dislocation caused by the winter storm in Texas,” states Jeremy Wodakow, managing director and head of Axpo US. “Working closely together with Cypress Creek, we were able to develop a hedging solution that satisfies all stakeholders involved in the project and enabled financial close.” Kirkland & Ellis LLP served as Cypress Creek’s legal counsel for the project financing, Mayer Brown LLP served as Morgan Stanley’s legal counsel, Winston & Strawn LLP served as legal counsel for the lenders and Norton Rose Fulbright US LLP served as Axpo’s legal counsel. PCL Construction is the engineering, procurement and construction provider.