Orrick Advises Intersect Power on $2.6 Billion Financing for Solar and Storage Portfolio

November.18.2021

Congratulations to our client Intersect Power which has closed eight transactions representing an aggregate of $2.6 billion of financing commitments for the construction and operation of a six project portfolio. The portfolio of 2.3 GWdc of late-stage solar projects with 1.8 GWh of storage, which is expected to be operational by 2023, includes the Athos III (CA), Radian (TX), Oberon I (CA), Oberon II (CA), Lumina I (TX) and Lumina II (TX) projects. These financings allow Intersect Power to transition from a develop and sell business model to a long-term owner of energy assets.

The financing includes $1.4 billion of portfolio level, term debt from HPS Investment Partners and co-investors CarVal, Generate and CAI, and approximately $800 million in construction financing. The financing was led by co-coordinating lead arrangers Santander and MUFG, and joint lead arrangers Keybank, CoBank and Helaba. This portfolio level term debt is one of the first financings of this type and especially at this scale.

Concurrent with the closing of the construction financing, Intersect secured approximately $400 million of commitments from tax equity investors, including Bank of America and Morgan Stanley. In addition, Intersect secured approximately $18.5 million of senior mortgage financing related to its land holdings for the Athos III and Radian projects from Hannon Armstrong.

The Orrick team advising Intersect Power was led by John Cook, John Donaleski, Tom Glascock and Chris Moore, and includes Dao Huynh, Susan Long, John Flynn, Lisa Magged, Amy Padgett, Devin Canavan, Trudie Makens, Jessica Sewell, Paige Griffiths, Iris Zhang, Molly Jergenson, John Grant, Bethanie Wallace, Seth Norris, Xiaowan Mao, Darrell Thomas, Savannah Brown, Giji John and Jonathan Ayre, among many others.