Intersect Power closed $2.4 billion of financing commitments and allocated $675 million of previously announced commitments to build and operate four solar energy projects totaling 1.5 GW PV + 1.0 GWh BESS.
The deals represent construction financing, tax equity, operational letters of credit and a portion of previously announced portfolio-level term debt.
MUFG and Santander served as co-lead arrangers on the $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 & II and the Lumina II projects.
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, in Texas, total around 840 MW. The Oberon I and II projects are in California and total roughly 685 MWp + 1,000 MWh BESS.
As with Intersect Power’s $2.6 billion financing announcement in November 2021, these financings included structuring and pricing provisions intended to account for the portfolio’s higher proportion of uncontracted revenue. Proceeds from the term facility are intended to support both construction and operation.
Intersect also lined up $775 million from tax equity investors, including Morgan Stanley Renewables Inc. (for Oberon II), a Fortune 100 technology company (for Lumina I), and U.S. Bank (for Oberon I and Lumina II).
The allocation of $675 million of previously announced term-loan commitments was provided by HPS Investment Partners and other investors.
Orrick Herrington & Sutcliffe represented Intersect Power (IP) as lead counsel on all transactions and Kirkland & Ellis LLP served as Intersect’s special tax counsel; CCA Capital LLC advised IP on the tax equity transactions; Greenberg Traurig served as counsel to U.S. Bank; Milbank LLP served as counsel to the tax equity investor on Lumina I; Mayer Brown LLP served as counsel to Morgan Stanley Renewables Inc.; Skadden, Arps, Slate, Meagher & Flom LLP served as counsel to HPS; and Winston & Strawn LLP served as counsel to the construction lenders.
