Excelsior Energy Capital Closes USD $1.3 Billion Project Financing Package for the Faraday Solar Project

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Excelsior Energy Capital announced today that it has closed a USD $1.3B financing package on the Faraday Solar project in Utah County, Utah.

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Tuesday, November 28, 2023
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Other Energy, Utilities, Oil, Gas, Finance, Alternative Energy, Energy, Banking, Professional Services, Sumitomo Mitsui Trust Holdings, Winston & Strawn, Acquisition, Ryan LLC, CIBC, Zions Bancorporation, Investment, U.S. Bancorp, PTC, IRA, Wind, Project finance, USD, Mergers and acquisitions, Huntington Bancshares, National bank, Capital market, Sumitomo Mitsui Banking Corporation, Associated Banc-Corp, Partnership, Comerica, PacifiCorp, National Bank of Canada, Electricity, DNB, Creditor, Excelsior, MUFG, Meta, Renewable energy, Bank, Umbrella, Michael Faraday
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UNITED STATES, NORTH AMERICA, UTAH, MINNESOTA, AMERICAS
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EXCELSIOR ENERGY CAPITAL, PACIFICORP
Summary
Key Points: 
  • Excelsior Energy Capital announced today that it has closed a USD $1.3B financing package on the Faraday Solar project in Utah County, Utah.
  • Excelsior acquired Faraday Solar earlier this year from Parasol and Clenera who developed the project.
  • Faraday Solar is a 682.5 MW ground-mounted solar facility and is contracted under an investment grade long-term power purchase agreement.
  • The Faraday investment is the largest single investment made by Excelsior’s first flagship fund, Excelsior Renewable Energy Investment Fund I (“Fund I”).


Excelsior Energy Capital announced today that it has closed a USD $1.3B financing package on the Faraday Solar project in Utah County, Utah. Excelsior acquired Faraday Solar earlier this year from Parasol and Clenera who developed the project. Faraday Solar is a 682.5 MW ground-mounted solar facility and is contracted under an investment grade long-term power purchase agreement.

The Faraday investment is the largest single investment made by Excelsior’s first flagship fund, Excelsior Renewable Energy Investment Fund I (“Fund I”). Fund I is a $504M infrastructure fund focused on investments in late-stage middle-market solar, wind and battery storage projects. Fund I is now fully deployed and consists of 1.9 GW of operating and in-construction projects diversified across 10 U.S. States.

“The acquisition and financing of the Faraday transaction was the result of an immensely collaborative effort with Parasol and Clenera, Excelsior’s innovative financing approach, and the efforts of our exceptional team,” said Jason Frooshani, Head of Mergers and Acquisitions at Excelsior. “This transaction demonstrates Excelsior’s continued commitment to acquiring superior quality projects from our partners in the renewable energy sector.”

Faraday is currently under construction and is expected to enter operations in third quarter 2025. The project has a long-term contract to provide renewable energy to PacifiCorp who will ultimately allocate the power to Meta, supporting the company’s 100% renewable energy and net zero commitments.

“We are grateful to our financing partners, and to the creative team at US Bank who worked with Excelsior to leverage several tools made available through the IRA to enable Faraday,” said Gabriel Wuebben, Excelsior’s Head of Capital Markets.

U.S. Bancorp Impact Finance committed USD 400m of tax equity through a solar PTC Partnership. The partnership is under term sheet with two investment grade credit transferees for 10-year PTC contracts as arranged with Ryan, LLC.

“U.S. Bancorp Impact Finance is thrilled to be a part of such an impactful project. It creates jobs and clean electricity in the state of Utah for generations,” said Director of Renewable Energy Investments Darren Van’t Hof. “A project of this size requires an enormous amount of collaboration, and we were pleased to work with a talented group of professionals from the Excelsior team to spearhead it.”

A USD 460m loan, a USD 300m TEBL and USD 250m in ancillary facilities were financed with MUFG and Nord/LB acting as Coordinating Lead Arrangers. DNB, Zions Bank, Sumitomo Mitsui Banking Corporation, Société Générale, CIBC, Huntington Bank and National Bank of Canada acted as Joint Lead Arrangers. Sumitomo Mitsui Trust Bank, Associated Bank and Comerica filled out the debt group.

“We are proud to have partnered with Excelsior Energy Capital on this significant investment for Fund I as one of the Coordinating Lead Arrangers,” said Beth Waters, Managing Director, Project Finance, Americas at MUFG. “The financing for the Faraday solar project is an example of MUFG’s continued commitment to supporting our clients with their long-term business goals in the renewable energy sector and beyond.”

“Nord/LB congratulates the Excelsior team on the closing of the financing for the Faraday project. We are honored to have acted as one of the Coordinating Lead Arrangers in this important financing which represents our firms’ shared commitment to facilitating the energy transition,” said Sondra Martinez, Managing Director, Project Finance, Nord/LB.

Akin Gump Strauss Hauer & Feld LLP acted as Excelsior’s legal counsel and CRC-IB advised on commercial and structuring matters. Sheppard, Mullin, Richter & Hampton served as U.S. Bancorp Impact Finance’s counsel, while Winston & Strawn served as Lender's counsel.

About Excelsior Energy Capital

Excelsior Energy Capital is a renewable energy infrastructure fund focused on middle-market investments in wind, solar and battery storage plants and businesses in North America. The Excelsior team brings over 100 years of combined experience and a comprehensive set of strategic, financial, legal and operational expertise; making Excelsior Energy Capital a valuable partner for developers and operators, and a trusted manager for investors. For more information, visit http://www.excelsiorcapital.com.

About PacifiCorp

Innovating to power a better future for the West, PacifiCorp operates the largest grid in the western United States, serving the growing energy needs of 2 million customers through 17,645 miles of transmission lines over a service area of 141,503 square miles. PacifiCorp operates as Rocky Mountain Power in Idaho, Utah and Wyoming and as Pacific Power in California, Oregon and Washington. PacifiCorp’s operating divisions are leaders in providing safe, reliable and sustainable low-cost power.

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