Intersect Power has closed eight separate transactions, which represent $2.6 billion in financing commitments, for the construction and operation of a six-project portfolio.
The six projects are Athos III (CA), Radian (TX), Oberon I (CA), Oberon II (CA), Lumina I (TX) and Lumina II (TX). The transactions cover tax equity, construction and land financing and portfolio level term debt with industry-leading partners. The closing will enable Intersect Power to complete its 2.2 GW portfolio of late-stage solar projects with 1.4 GWh of storage.
The $1.4B of portfolio level and term debt funding from existing investors and HPS Investment Partners and Co-Investors is what makes these financings different from typical renewable projects. Proceeds from the term facility will be used for the construction and the operation of this Portfolio.
“This financing will allow Intersect to deliver a core set of projects in the next two years that will serve as the platform for future growth into green hydrogen and beyond,” Intersect Power CEO and founder Sheldon Kimber said. “This is the base from which our company will build the most scalable, transformative clean energy projects that minimize cost and risk per MW deployed, and move the needle on the deep decarbonization of our economy.”
The $800 million construction financing will be used for the 310-MW/453-MWh BESS Athos III Project in Riverside County, California, and 415-MW Radian Project in Brown County, Texas. Both the projects are under construction and expected to come online in late 2022.
Concurrent to the closing of the construction financing, Intersect Power also received $400 million in commitments from tax equity investors, including Morgan Stanley Renewables Inc. (Athos III) and Bank of America (Radian). An innovative offtake structure was executed with Merrill Lynch Commodities to hedge the Radian project.
