News, Solar, Utility Scale

Financing complete on 210-MW Mustang Two solar project

Solar Frontier Americas (SFA), the US-based renewable energy business of Idemitsu Kosan Co., Ltd, announced it closed on the tax equity commitment and debt financing for its 210-MW Mustang Two solar project in Kings County, California.

Located on a 1,400-acre site, Mustang Two is currently under construction and is slated to begin commercial operation in 2020. Once complete, the project will be owned and operated by Solar Frontier Americas.

Lenders for the approximately $176 million construction-to-term facility are KeyBank N.A. and Mizuho Bank, Ltd. Morgan Stanley Renewables Inc. has committed to make up to $120 million in tax equity financing for Mustang Two.

CohnReznick Capital served as financial advisor and Stoel Rives served as Solar Frontier Americas’ counsel in the deal.

“Obtaining financing from these top tier lenders and tax equity provider is yet another major milestone and accomplishment for Solar Frontier Americas’ IPP and development business. SFA and our parent company, Idemitsu, continue to expand our US business with extraordinary partners dedicated to the growth of renewable power,” said Charles Pimentel, CEO of Solar Frontier Americas’ IPP business unit.

KeyBanc Capital Markets is also pleased to serve as an arranger on the financing to support Solar Frontier Americas in this milestone project,” said Andrew Redinger, Manager Director & Group Head, Utilities Power & Renewables at KeyBanc Capital Markets.

Mustang Two represents SFA’s largest project and financing to date. Recent projects include the

The renewable power generated by Mustang Two will be sold through power purchase agreements with Peninsula Clean Energy, which serves San Mateo County, and Modesto Irrigation District.

Lead image credit Solar Frontiers.