Private asset management firm Capital Dynamics said this week that its Clean Energy Infrastructure (CEI) business has achieved financial close on a 383-megawatt (MWdc) solar photovoltaic project, located on the Moapa River Indian Reservation in Nevada.
This transaction represents the financial close for the Eagle Shadow Mountain project and builds on the initial collaboration with 8minute Solar Energy, which continues to oversee project development.
The project is anticipated to generate up to 400 new jobs during the 18-month construction period, with 10 full-time employees working at the plant upon completion by the end of 2021.
Project financing for Eagle Shadow Mountain comprised US $327M in credit facilities led by MUFG Union Bank, including a US $202M construction-to-term loan facility with a tenor of construction plus five years. MUFG devised a tailored approach to a construction facility that provides maximum flexibility and debt sizing prior to tax equity commitment to the project, as well as a committed accordion feature, which will convert the facility into a conventional construction plus term backleverage facility upon tax equity commitment. Commonwealth Bank of Australia and Sumitomo Mitsui Banking Corporation also provided a Letter of Credit Facility. Capital Dynamics is currently arranging tax equity financing.
“We are pleased to complete a path-breaking financing with MUFG and our other financial partners, particularly in the midst of a challenging market environment,” said Benjamin Droz, Vice President of Clean Energy Infrastructure at Capital Dynamics. “This project is a testament to our deep and collaborative relationships with both 8minute Solar Energy and the Moapa Band of Paiutes, and a meaningful addition to our rapidly growing portfolio of long-term contracted solar assets.”
“MUFG is very pleased to lead and successfully close the debt financing for Eagle Shadow Mountain,” said Matt Curtin, Director at MUFG Union Bank, N.A. “The transaction afforded MUFG the opportunity to continue our support for Capital Dynamics, a premier sponsor in the PF market, while structuring a creative solution to address the challenging post-COVID market for tax equity.”