sPower raises USD 786m of tax equity and debt for solar projects
The sPower Sandstone Solar facility in Florence. Photo: Business Wire
US renewable power provider sPower said today it has completed financing totalling USD 786 million (EUR 701m) to fund 339.4 MW of solar projects in Lancaster, California.
The nine-strong portfolio consists mostly of projects under construction, as well as two that have recently become operational.
The capital secured is a tax equity investment and syndicated construction and term loan facility. KeyBanc Capital Markets Inc was coordinating lead arranger for the syndicated debt facility totaling USD 519 million. KeyBank NA, CIT Bank NA, CoBank ACB, Cooperatieve Rabobank UA, Norddeutsche Landesbank Girozentrale (Nord/LB), Siemens Financial Services Inc and Wells Fargo Bank NA took part.
"With a company that is growing so quickly, recycling capital is incredibly important," said Ray Henger, sPower senior vice president, structured finance. He added that financing a large portfolio build-out with a single tax equity provider and a syndicate of banks provides significant efficiencies.
The transaction was hailed as landmark for the renewables sector due to its size and complexity.
Salt Lake City-based sPower has commissioned 179.3 MW of projects since the start of 2016, including its first wind project, the 60-MW Latigo wind park in Utah.