The power and energy business of CIT, a division of First Citizens Bank, served as lead arranger on $419 million in financing for the acquisition of the Broad River power generation facility in Gaffney, SC.
Onward Energy is acquiring the five-unit, 860-megawatt simple-cycle peaking power plant, which is fully contracted under a long-term power purchase tolling agreement with Duke Energy Progress. The financing package included a term loan, letters of credit and a working capital facility.
“The Broad River power facility is a vital component of the region’s energy infrastructure, especially in supporting reliability when energy demands are at their strongest,” Steve Doyon, CEO of Onward Energy, said. “This acquisition is consistent with our focus on reliability to support further decarbonization in the energy transition, and we appreciated CIT’s agility and expertise in working through the financing for this important transaction.”
“CIT is well acquainted with the operation and value of the Broad River facility,” Mike Lorusso, managing director and group head for CIT’s power and energy business, said. “We were pleased by the opportunity to arrange this latest financing for the power plant and look forward to working with Onward Energy in the future.”
