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Recurrent closes $337m financing for Tranquillity PV project

Canadian Solar subsidiary Recurrent Energy has closed on a $337m combined construction and term debt facility for the 200MW Tranquillity PV project under construction in California.

NORD/LB acted as the coordinating lead arranger, while Rabobank, Santander, KeyBanc, CIT, and CIBC will provide project-level construction debt, LC facilities and a back-leveraged term facility.

"At a time when the US utility-scale solar industry is experiencing record growth, top tier financiers find high-quality solar projects to be an attractive asset class," says Shawn Qu, chief executive of Canadian solar.

"We are proud to partner with this leading group of lenders on the Tranquillity project which underscores our broader team's ability to consistently deliver bankable solar projects," he adds.

Last month, Canadian Solar announced it will sell a 51% stake in Tranquillity to Atlanta-based Southern Company, among the largest US electric utility holding companies.

The move came amid hesitation by Canadian Solar over whether to advance plans to launch a yieldco later this year or in early 2016. Stock prices of yieldcos have plummeted in the recent market swoon, leading Canadian Solar and others to reassess their yieldco strategies.

While a yieldco remains Canadian Solar’s “preferred” means of monetizing its portfolio of utility-scale solar projects, Qu recently suggested it may not do so after all.

Recurrent expects Tranquillity to reach commercial operation in fourth quarter 2016, qualifying it for the 30% federal investment tax credit. It will generate enough clean solar energy to power 55,000 homes.

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