Independent power generator Onward Energy is acquiring the Broad River power generation facility in Gaffney, South Carolina.
Broad River is a five-unit, 860-megawatt simple-cycle peaking power plant, which is fully contracted under a long-term power purchase tolling agreement with Duke Energy Progress.
CIT, a division of First Citizens Bank, worked as lead arranger for $419 million in financing for acquisition. The financing package included a term loan, letters of credit and a working capital facility.
"The Broad River power facility is a vital component of the region's energy infrastructure, especially in supporting reliability when energy demands are at their strongest," said Steve Doyon, chief executive of Onward Energy. "This acquisition is consistent with our focus on reliability to support further decarbonization in the energy transition, and we appreciated CIT's agility and expertise in working through the financing for this important transaction."
Onward currently owns and operates over 5GW of solar, wind and gas generation projects in the US, across 45 projects in 18 states.
"CIT is well-acquainted with the operation and value of the Broad River facility," said Mike Lorusso, managing director and group head for CIT's power and energy business. "We were pleased by the opportunity to arrange this latest financing for the power plant and look forward to working with Onward Energy in the future."