Daily News: November 15, 2016

KeyBanc Capital Markets Arranges $434MM sPower Equity/Debt Financing


sPower, a private owner of utility-scale solar operating assets, completed a $434 million tax equity investment and construction/term loan.

KeyBanc Capital Markets acted as coordinating lead arranger, with the debt facility provided by CIT Bank, CoBank, Rabobank, KeyBank, Norddeutsche Landesbank Girozentrale and Siemens Financial Services. PNC Energy Capital and U.S. Bancorp Community Development partnered in this deal to provide tax equity. CohnReznick Capital Markets Securities advised sPower on the transactions.

“The team successfully came together to find creative finance and structuring solutions,” said Ray Henger, sPower SVP of M&A and Structured Finance. “While coordination across this many banks was a challenge, we appreciate how hard our partners worked to close the transaction.”

The funds will be used to finance a group of three solar projects that, when fully operational, will generate 183.4MWdc of renewable energy. All three of the Beacon Solar projects, located in Cantil, CA, are currently under construction and have 25-year power purchase agreements (PPAs) with Los Angeles Department of Water and Power. sPower anticipates Beacon 4 (56.5MWdc) will achieve commercial operations before the end of the month. Beacon 3 (63.0MWdc) is projected to come online by the end of the year with Beacon 1 (63.9MWdc) to follow in the first quarter of 2017.