Recurrent seals financing for 75MW PV project in California

Solar developer Recurrent Energy has closed financing for the 75MW (ac) Astoria 2 PV project under construction in California, expanding its commercial relationship with GE Energy Financial Services and a club of five commercial banks.

The GE unit has made a tax equity investment in the project, the second with Recurrent in two months. In November, it invested tax equity in the nearby 100MW (ac) Astoria PV facility.

Recurrent is utilizing GE 1500V inverters for both projects that are due to reach commercial operation in the fourth quarter.

Santander Bank NA was coordinating lead arranger of the bank club, which will provide project-level construction debt, a letter of credit facility and a back-leveraged term loan facility totaling $180m.

Santander, along with NORD/LB, Rabobank, Key Bank, and CIT Bank, also arranged $260m in financing for the initial Astoria project.

“The support of this bank club and the expansion of our work with GE reflects our ability to consistently deliver high quality solar assets," says Shawn Qu, chief executive of Canadian Solar, parent of Recurrent.

Astoria 2 will generate power for 25,000 homes. The electricity and associated renewable energy credits (RECs) generated by the facility will be sold under power purchase agreements.

Recurrent has been active in California. It recently sold a 51% stake in the 200MW (ac) Garland and Tranquility PV projects under construction there to Southern Power, a unit of Atlanta-based Southern Company.