December 19 (Renewables Now) - Solar Frontier Americas (SFA) has secured a tax equity commitment and debt financing for the 210-MWp Mustang Two solar project in California, it announced on Wednesday.
SFA, which is the US-based renewable energy business of Japanese petroleum company Idemitsu Kosan Co Ltd (TYO:5019), obtained a roughly USD-176-million (EUR 158m) construction-to-term facility from KeyBank NA and Mizuho Bank Ltd. Also, Morgan Stanley Renewables Inc has pledged to provide up to USD 120 million in tax equity financing for the project.
The Mustang Two solar plant is currently being built on a 1,400-acre site in Kings County. The facility is expected to become operational next year and will be selling its output under power purchase agreements (PPAs) with Peninsula Clean Energy, which serves San Mateo County, and Modesto Irrigation District.
CohnReznick Capital acted as financial advisor, while Stoel Rives served as SFA's counsel in this transaction.
(USD 1.0 = EUR 0.898)