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 acquisitions.

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 ( PFR, 7/11).

CONSTRUCTION FINANCING

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 ( PFR, 8/21).

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.

FULLY CONTRACTED

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.

GROWING PORTFOLIO

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 ( PFR, 7/5).

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 Monday. 

"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.

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