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 Power Agency. 

The tenor of the term loan is 15 years, says a deal watcher, adding that the pricing steps up to 300 basis points over Libor.

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 ( PFR, 2/18). 

The content you are trying to view is restricted for Power Finance & Risk subscribers.

To continue reading, please log in using the login box in the upper right corner of this page, subscribe or take a free trial.

Subscribe

Set up your account today for full access to Power Finance & Risk.

Join our readership!

Subscribe

Free Trial

Want unlimited access, but don't feel quite ready to subscribe?

Start your free trial today!

Free Trial