Funding nailed down for huge Kern solar project

GUELPH, ONTARIO

January 5, 2016 8:39am

•  Recurrent Energy closes financing for 75 Megawatt Astoria 2 solar power project

•  Expected to go online in late 2016

Recurrent Energy, one of North America's largest solar project developers, has closed on a tax equity investment commitment with GE (NYSE: GE) unit GE Energy Financial Services for the 75 megawatt Astoria 2 solar power project in Kern County, according to Recurrent’s parent company, Canadian Solar Inc. (NASDAQ: CSIQ) of Guelph, Ontario.

Recurrent Energy also closed a debt facility for the Astoria 2 project, currently under construction.

Recurrent Energy will be the managing member of the Astoria 2 solar power project and plans to own and operate the facility. Santander Bank, N.A., of Boston, Mass., was the coordinating lead arranger of a five member bank club including NORD/LB, Rabobank, Key Bank, and CIT Bank, which will provide project-level construction debt, a letter of credit facility and a back-leveraged term loan facility, totaling approximately $180 million.

"The Astoria 2 transaction completes the financing of Recurrent Energy's late-stage portfolio and is our second transaction with GE," says Shawn Qu, chairman and CEO of Canadian Solar.

The Astoria 2 solar power project is expected to reach commercial operation in the fourth quarter of 2016 and will utilize GE 1500V inverters. The project is expected to generate enough clean solar energy to power approximately 25,000 California homes. The electricity and associated renewable energy credits (RECs) generated by the facility will be sold under power purchase agreements. The Astoria 2 project is adjacent to the Astoria solar project, which closed financing in November 2015.

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