CIT Group has arranged a $59.8 million
financing with a merchant tail for a portfolio of GCL
New Energy solar projects in North Carolina.
The deal consists of a construction loan, a tax equity
bridge loan and a back-levered term loan.
The package finances an 84.5 MW portfolio of eight solar
projects in Wilson County, N.C., ranging from 2 MW to 10 MW in
size. All of the facilities have 10-year power purchase
agreements with the North Carolina Eastern Municipal
The tenor of the term loan is 15 years, says a deal watcher,
adding that the pricing steps up to 300 basis points over
That means that the deal has a five-year merchant tail,
during which the projects in the portfolio qualify under PURPA
and will sell their capacity to utilities in Duke
Energy's service territory, adds the deal watcher.
The projects represent the first of several U.S. solar
investments recently made by Hong Kong-based GCL, the company
announced on Thursday. The first of the three projects is
slated to be online by March 31.
GCL acquired the projects earlier this year from
Mount Olive I and Hive Energy
for $4.9 million (