Recurrent Energy Secures Debt Financing for 157MW Texas Solar Project
Canadian Solar Inc. today announced that its wholly owned subsidiary, Recurrent Energy has closed on a combined construction and term debt facility, with a syndicate of five banks, for the 157.5MW)ac/ 212MW Roserock solar project in Texas. The project, developed by Recurrent Energy, is currently under construction. The electricity generated by the facility will be delivered to Austin Energy pursuant to a 20-year Power Purchase Agreement.
With KeyBank as the Coordinating Lead Arranger, five banks, including Rabobank, Santander, NORD/LB, and CIT will provide project-level construction debt, LC facilities and a back-leveraged term facility, totaling approximately $275 million.
"This top tier group of financiers' attraction to the Roserock solar project is a clear indication that large-scale solar can compete and succeed in competitive energy markets like Texas," said Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar. "This agreement is a testament to our broader team's ability to deliver bankable solar projects with strong fundamentals."
"This is our fourth transaction with Recurrent Energy in 2015. We are proud to continue our working relationship and view Roserock as a strong investment in the fast growing Texas solar market," said Andrew Redinger, Managing Director and Head of KeyBanc Capital Markets Utilities, Power & Renewables Group.
Roserock, located on approximately 1,300 acres in Pecos County in West Texas, is projected to create 500 construction jobs. The project will use approximately 700,000 Canadian Solar CS6X-P PV solar modules and is expected generate enough energy to power more than 30,000 Texan homes once it reaches commercial operation in late 2016. The facility layout was developed in cooperation with mineral operator Apache Corporation.