Project Finance Brief: Deriva Energy Acquires 140 MW Solar Project

Greenbacker Capital Management, a renewable energy asset manager, through an affiliated investment vehicle, entered into a $92 million financing agreement with BMO, who served as both the lender and the administrative agent for the deal. Wilmington Trust served as collateral agent and depositary agent.

The financing package includes a construction-to-term loan, a tax equity bridge loan, a term loan commitment, and a letter of credit facility. The proceeds from the construction, comprising of construction and tax equity bridge loans, will be used to finance the construction of the 30 MW Holtville battery energy storage project. The project has a long-term contract in place with an investment-grade off-taker.

The term loan will support the construction of a portfolio of community solar projects in the northeastern U.S. All portfolio projects are expected to enter commercial operation in 2024.

Greenbacker was advised on the deal by the Stoel Rives law firm. Paul Hastings LLP served as BMO’s legal advisor. Wilmington Trust was advised by Bryan Cave Leighton Paisner law firm.

According to Mercom’s 9M and Q3 2023 Energy Storage and Smart Grid Report, there were 26 announced Energy Storage project funding deals in 9M 2023, bringing in a combined $6.8 billion compared to $5.4 billion in 34 deals in 9M 2022.

Aypa Power, a Blackstone portfolio company that develops, owns, and operates utility-scale energy storage and hybrid renewable energy projects, recently secured $550 million in debt and tax equity financing for energy storage projects. The First Citizens Bank & Trust Company, Nomura Securities International, Inc., National Bank of Canada, and MUFG Bank, LTD. served as lenders, and U.S. Bancorp Impact Finance as the portfolio’s tax equity investor.


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