Project Finance Brief: Capital Dynamics Secures $327 Million for a 383 MW Solar Project

C2 Energy Capital acquires a floating solar project in California

December 7, 2020


From: Mercom Capital Group

Capital Dynamics, an independent global private asset management firm, announced that its Clean Energy Infrastructure (CEI) business had achieved a financial close on a 383 MW Eagle Shadow Mountain solar PV project Moapa River Indian Reservation in Nevada. Project financing for the project comprised $327 million in credit facilities led by MUFG Union Bank, including a $202 million construction-to-term loan facility with a tenor of construction plus five years. Commonwealth Bank of Australia and Sumitomo Mitsui Banking Corporation also provided a Letter of Credit Facility.

Greenbriar Capital, a developer of sustainable real estate and renewable energy projects, announced that it had executed a formal agreement with Devon Sandford of Lethbridge, Alberta, to acquire a 500 MW solar PV project portfolio in Alberta. The proprietary portfolio is at various development stages, including late-stage, mid-stage, and early-stage projects. Devon owns and operates a large utility-scale solar energy construction firm (Northern DC Solar) and has recently built several large utility-scale solar projects in Alberta.

Cypress Creek Renewables, a solar project developer, said that it completed the sale of two Massachusetts community solar projects totaling 6.35 MW to CarVal Investors. The projects, located in Bristol and Franklin counties, are community solar projects that Cypress Creek developed under the state’s Solar Massachusetts Renewable Target (SMART) program. The projects were originally developed by Clean Energy Collective, then purchased by Cypress Creek, which completed all late-stage development work. Construction is currently underway on both projects by EPC contractor Signal Energy DG, with commercial operation anticipated in spring 2021. Cypress Creek O&M Services will provide operations and maintenance for the projects.

Agilitas Energy, a developer of utility-scale solar and storage systems, published the closing of its sale of a 16.8 MW solar PV portfolio to CarVal Investors, an investment fund manager. The portfolio comprises 12 solar projects varying from landfill, ground-mount to rooftop, located in New York, Massachusetts, and New Hampshire. Fifth Third Bank is serving as the financial advisor, and Sherin & Lodgen is serving as legal counsel to Agilitas Energy. Mehall Law acted as supporting counsel for this transaction. Foley & Lardner is serving as legal counsel to CarVal Investors.

Distributed Solar Development (DSD), a business-backed by BlackRock Real Assets’ Global Renewable Power platform and GE Renewable Energy, has acquired a three-project, 17 MW community solar portfolio from Source Renewables, a New York-based solar project developer. The three projects, including solar and storage, were developed by Source Renewables from greenfield and are expected to reach commercial operation next summer. The three projects are slated to proceed with installation this winter, with Utah-based Mill Creek Engineering engaged for engineering, procurement, and construction.

Gresham House Energy Storage Fund, an operational utility-scale battery storage fund, has completed its investment in the 50 MW battery project near Wickham Market, Suffolk. Wickham followed GRID’s recent acquisition of the Thurcroft project and was acquired for a total enterprise value of £32.75 million (~$43.6 million) (plus up to £0.75 million of deferred contingent consideration).

Gunkul Engineering has taken over a solar project in Vietnam at a $39.9 million cost. The firm became the sole owner of Vietnam-based Doan Son Thuy Investment JSC (DST) and is ready to operate a 50 MW Phong Dien II solar power project. The project will connect to the state grid, operated by Vietnam Electricity, under a power purchase agreement, with a feed-in tariff of $0.0709/kWh granted to the operator for 20 years. The project is expected to start commercial operation on December 15.

C2 Energy Capital, an investor in renewable energy and storage assets, has acquired a 1.78 MW floating solar project in California from Ciel & Terre. As part of the project, the Town of Windsor has signed a 25-year power purchase agreement to demonstrate substantial savings. The system generates approximately 90% of the energy needed for water reclamation and associated operations and will reduce the facilities’ electricity costs by 30% compared to grid services.

Sonnedix, an independent solar power producer (IPP), has acquired two fully-operating portfolios under the Spanish regulatory regime from a group of private individuals. The first portfolio of 4.3 MW comprises four ground-mounted PV projects, and the second acquisition of 2.9 MW consisting of one ground-mounted PV project. The solar projects are located in Valencia, Palencia, Alicante and Castellon and Cuenca, and have all been in operation since 2008. On these transactions, Sonnedix was advised by Deloitte for financial due diligence and Vector Renewables for technical due diligence, and Cuatrecasas for legal and tax due diligence and SPA negotiations.

For reports and trackers on funding and M&A transactions in solar, energy storage, smart grid, and efficiency sectors, click here.

Read last week’s project finance brief.

Image credit: Pivot Energy


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