A global asset manager has closed debt and tax equity
financing for two utility-scale projects, which it recently
added to its burgeoning portfolio of solar assets.
Capital Dynamics, which acquired the two
solar projects in California in competitive processes from two
different sponsors, sealed financing for
the projects on Monday, a deal watcher tells PFR,
adding that the investor did not use an external adviser on the
The Zug, Switzerland-headquartered firm closed its purchase
of one of the two projects, the 280 MW California Flats solar
project in Monterey County, from First
Solar, also on Monday.
The shop had acquired the other asset, the 328 MW Mount
Signal 3 solar project in Calexico, from 8minutenergy
Renewables earlier this summer (
Allianz Global Investors and
Samsung led a $250 million 20-year debt
financing for the Mount Signal 3 project, says the deal
watcher. Wells Fargo supplied $250
million of tax equity for the project.
Allianz GI, Hana Asset
Management Co. and IFM
Investors meanwhile provided $270 million of debt
financing, also with a 20-year tenor, for the California Flats
facility, adds the deal watcher. Goldman
Sachs and U.S. Bank provided $450
million of tax equity.
Goldman is also the tax equity investor in another project
developed by First Solar, the 40 MW Cuyama project in Santa
Barbara, Calif., which was recently acquired
by D.E. Shaw (
Both Mount Signal 3 and California Flats have tax equity
bridge loans. NordLB and
Santander provided the bridge loan for Mount
Signal 3, while NordLB and Rabobank provided
the bridge loan for California Flats.
The California Flats project is located near the border
between San Luis Obispo and Monterey counties. The first 130 MW
phase is slated to be completed in the fourth quarter of this
year and is contracted under a 25-year power purchase agreement
with Apple. The second 150 MW phase, which is
due to be complete by the end of 2018, has a PPA of the same
length with Pacific Gas & Electric.
The Mount Signal 3 facility, which
8minutenergy acquired from
SunEdison during bankruptcy
proceedings, has a 20-year power purchase agreement
with Southern California Edison.
The Mount Signal 3 project is the second that Capital
Dynamics has acquired from First Solar. The asset manager
acquired the Moapa Southern Paiute project in Nevada earlier
this year. The Moapa project was financed by
Allianz Global Investors in its inaugural solar debt
financing earlier this year (
Including the two latest acquisitions, the Capital Dynamics
clean energy infrastructure team owns three of the 10 largest
solar projects in North America and has in excess of 3 GW of
projects either operating or under construction, according
to a statement announcing the acquisitions on
"As an investor focused on clean energy projects, we expect
to continue to actively grow that portfolio in the immediate
future," writes John Breckenridge, head of the
group, in the statement. New York-based
Breckenridge declined to comment further
when contacted by PFR.