sPower, a Salt Lake City-based independent power producer, has completed a tax equity investment and syndicated construction and term loan facility totaling $786 million for nine solar projects in Lancaster, Calif.
KeyBanc Capital Markets Inc. acted as coordinating lead arranger for the syndicated debt facility totaling $519 million. KeyBank N.A., CIT Bank N.A., CoBank ACB, Cooperatieve Rabobank U.A., Norddeutsche Landesbank Girozentrale (Nord/LB), Siemens Financial Services Inc., and Wells Fargo Bank N.A. were involved.
The capital will be used to finance a group of nine solar projects that, when fully operational, will generate 339.4 MW of renewable energy. Although most of the projects are under construction, two recently achieved commercial operation.
CohnReznick Capital Markets Securities (CRCMS), a boutique investment banking services firm, advised sPower on the tax equity investment. Stoel Rives LLP, a law firm in energy project development and finance, assisted sPower with the negotiation and documentation of the financing.
“With a company that is growing so quickly, recycling capital is incredibly important,” said Ray Henger, sPower SVP structured finance. “Financing a large portfolio build-out with a single tax equity provider and a syndicate of banks creates substantial efficiencies.”
Earlier this year, sPower commissioned an incremental 179.3 MW of renewable energy projects including its inaugural wind project (60 MW Latigo Wind Park in Utah) and a number of utility-scale solar projects in California, Massachusetts and New York.