Longroad Energy Completes Term Financing of 200 MWdc Sun Streams 2 Solar Project
Project declares commercial operations; tax equity and lenders have funded the permanent capital structure
BOSTON, July 20, 2021 /PRNewswire/ -- Longroad Energy, a US-based renewable energy developer, owner and operator, announced today the completion and funding of the term financing for Sun Streams 2, its 200 MWdc solar project located in Maricopa County, Arizona. Longroad owns 100 percent of the project after acquiring it in early 2021 from First Solar, the original developer.
CIBC was the coordinating lead arranger, collateral agent and issuing bank. Silicon Valley Bank served as coordinating lead arranger and administrative agent. Helaba participated. PNC Bank was the sole tax equity investor.
"Sun Streams 2 is a great project, and we are happy to finalize the permanent capital structure," said Peter Keel, Chief Financial Officer of Longroad Energy. "We are grateful to our lenders CIBC, Silicon Valley Bank, and Helaba. Also, we are pleased to complete our first tax equity transaction with PNC Bank. Longroad values our financial partners and looks forward to many more deals with them in the future."
"The Sun Streams 2 project is another example of Longroad Energy's market-leading development capabilities and CIBC's commitment to the U.S. renewable energy sector," said Jim King, Managing Director at CIBC. "We are pleased to co-lead this important financing for Longroad and we thank the team for asking us to support them on this significant transaction."
"We are delighted to support the Longroad Energy team by leading the financing of the Sun Streams 2 solar project," said Bret Turner, Market Manager of project finance at Silicon Valley Bank. "This innovative project will help companies, such as Microsoft, reach their renewable energy goals."
"PNC is pleased to provide Longroad Energy with tax equity financing for the Sun Streams 2 solar generation facility," said Mark Williams, managing director for PNC's Renewable Energy Finance Group. "This project underscores our commitment to supporting customers and communities throughout the U.S. with financing for high-quality renewable assets."
Sun Streams 2 has a 20-year revenue agreement with Microsoft Corporation for the energy, RECs, and capacity of the full project to support the renewable energy goals of its new sustainable datacenter region, West US 3.
First Solar was the original developer of the project as well as the supplier of the Series 6 modules. The project was built by McCarthy, the trackers were supplied by Nextracker and inverters were supplied by SMA.
Sun Streams Complex
Sun Streams 2 is one of four Maricopa County-based projects that Longroad acquired from First Solar in February 2021. The PV and storage portfolio totals approximately 900 MWdc with the potential for 1-2 GWh of battery storage.
Sun Streams 3, 4, and 5 are development projects with target operational dates between 2022 and 2024. These projects are ideally positioned to accommodate a variety of offtake structures, with or without storage.
The projects are expected to generate over $40 million for Arizona's schools via a long-term lease with the Arizona State Land Department, and over $5 million in tax revenue. Longroad extends our thanks to the staff and officials at the Arizona State Land Department and Maricopa County for their support and collaboration throughout development and construction of the Sun Streams 2 project.
The Sun Streams projects mark a growing presence in Arizona for Longroad. The company owns other operating solar projects in the state as well as an existing development portfolio. The Sun Streams site is well situated: adjacent to a significant power hub in the desert Southwest and California, offering excellent solar resource, and access to multiple transmission options with direct access to CAISO and the Southwest markets.
Longroad's affiliate, Longroad Energy Services, is the asset manager and operator, and is providing remote monitoring services to the project over the long term.
About Longroad Energy Holdings, LLC
Longroad Energy Holdings, LLC is focused on renewable energy project development, operating assets, and services. Today, Longroad owns 1.6 GW of operational and under construction wind and solar projects across the United States. Its services affiliate, Longroad Energy Services, operates and manages 3.6 GW in total comprised of these projects plus 2.0 GW of wind and solar projects on behalf of third parties. Longroad is owned by the New Zealand Superannuation Fund, Infratil Limited, and Longroad's management team.
Web: www.longroadenergy.com
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SOURCE Longroad Energy
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