Pivot Energy, a solar provider that develops, finances, builds, owns, and manages solar and energy storage projects, secured a $203 million financing facility to support the construction of 100 MW of distributed generation solar projects in the U.S.
Silicon Valley Bank (SVB), a division of First Citizens Bank, will lead the debt facilities, and Foss & Company (Foss) will make the initial tax equity investment. The 100 MW portfolio comprises 35 community solar and C&I projects planned to reach commercial operation (COD) between Q2 2023 and Q2 2024.
The debt transaction led by SVB includes a construction loan, tax equity bridge loan, and term loan. SVB circled the financing and will act as a Coordinating Lead Arranger (CLA), Sole Bookrunner, and Administrative Agent with J.P. Morgan, National Bank of Canada, Bank United, Cadence, and Comerica. J.P. Morgan acted as CLA, and National Bank of Canada, Bank United, Cadence, and Comerica served as Lenders. The National Bank of Canada provided the Letter of Credit Facility.
This portfolio marks J.P. Morgan’s first debt financing in the community solar market.
Bret Labadie, Chief Financial Officer of Pivot Energy, said, “I am very proud of the entire Pivot team on this incredible accomplishment as we continue to build a strong operating portfolio base. This transaction also highlights that SVB continues to lead the community solar financing space. I am thrilled to continue this partnership and show the broader community solar space that SVB and First Citizens Bank remain committed to this important asset class.”
According to Mercom’s Q1 2023 Solar Funding and M&A report, large-scale project funding came to $5.3 billion in 62 deals, a decrease of 46% compared to $9.8 billion in 52 deals in Q4 2022.