sPower closes on US$700m financing for 500MW solar project

sPower has closed on more than US$700 million construction/term loan financing for Spotsylvania Solar Energy Center in Spotsylvania County, Virginia. At 500 MW (620 MWdc), this is the largest solar project east of the Rockies. The project is currently under construction, with phases coming online this year through project completion in the summer of 2021.

The full financing package for the Spotsylvania Solar Energy Center exceeds US$1 billion. In April, sPower secured a US$350 million tax equity commitment for this project with Wells Fargo’s Renewable Energy & Environmental Finance group. Nine separate banks committed the US$700 million of capital needed for the construction/term loan financing, this completes financing for the project.

sPower received local approval of its three special use permit applications for the Spotsylvania Solar Energy Center in April of 2019, and construction began shortly after. The project was approved by the Virginia State Corporation Commission (SCC) in August of 2018.

HSBC was Sole Coordinating Lead Arranger, and the financing included eight additional Mandated Lead Arrangers: La Caixa, CIBC, National Bank of Canada, Citibank, Societe Generale, Landesbank and Banco de Sabadell.

The project will offset approximately 825,000 metric tons of carbon dioxide emissions each year and will generate an estimated 700 new jobs during the construction phase and approximately 20–25 full-time positions during operations.

Cohn Reznick served as financial advisor and Sheppard Mullin served as sPower’s counsel in the deal.