Intersect Power LLC has closed an aggregate of $2.4 billion of new financing commitments and the allocation of $675 million of previously announced commitments for the construction and operations of four solar energy projects totaling approximately 1.5 GW DC PV and 1 GWh BESS.
The transactions represent construction financing, tax equity, operational letters of credit and a portion of previously announced portfolio level term debt with partners.
All four projects – Lumina I, Lumina II, Oberon I and Oberon II – are expected to be operational in 2023. The Lumina I and II projects, located in Texas, total approximately 840 MWp. The Oberon I and II projects, in California, total approximately 685 MWp + 1,000 MWh BESS. These projects are part of the company’s late-stage portfolio totaling 2.2 GW of late-stage solar projects with 1.4 GWh of storage.
“These closings culminate a multi-year process raising more than $6 billion to build out one of the largest solar + storage portfolios our country has seen to date which serves as a platform for future growth into green hydrogen and other decarbonization technologies,” says Sheldon Kimber, CEO of Intersect Power. “The strength of our partnerships and collective teams’ determination further validates our path to decarbonize the hard-to-reach corners of the economy.”
As with Intersect Power’s $2.6B financing announcement in November 2021, these financings follow the company’s approach by incorporating structuring and pricing provisions designed to account for the higher proportion of uncontracted revenue in the portfolio. Proceeds from the term facility will support both construction and operation of the portfolio.
MUFG and Santander served as co-lead arrangers on the approximately $1.6 billion construction financing with NORD/LB, KeyBanc Capital Markets, Helaba, CoBank, Bank of America, and Zions Bancorporation acting as joint lead arrangers. CoBank ACB is providing operational letters of credit to the Oberon I and II, and the Lumina II projects.
Concurrent with the closing of the construction financing, Intersect secured approximately $775 million of commitments from tax equity investors, including Morgan Stanley Renewables Inc. (Oberon II), a Fortune 100 technology company (Lumina I) and U.S. Bank (Oberon I and Lumina II).
The allocation of $675 million of previously announced term-loan commitments was provided by HPS Investment Partners and Co-Investors.