Orrick Advises Intersect Power on US$3.1 Billion Financing for a 1.5 GW of Solar + 1 GWh Storage Portfolio

2 minute read | October.06.2022

Orrick advised Intersect Power, a clean energy company, in securing US$3.1 billion in project financing to fund the construction and operation of a 1.5 GW solar plus 1 GWh storage portfolio—one of the largest solar plus storage portfolios in the U.S. to date. The financing is comprised of $2.4 billion of new financing commitments and $675 million of previously announced commitments, including construction financing, tax equity, operational letters of credit and portfolio level term debt.

The portfolio consists of four projects—the 840 MW Lumina I and II in Texas and the 685 MW PV + 1,000 MWh BESS Oberon I and II in California—that are anticipated to reach commercial operation in 2023. The projects are part of the company's late-stage portfolio totaling 2.2 GW of late-stage solar projects with 1.4 GWh of storage. The financing commitments culminate a multi-year fundraising process whereby Intersect secured more than $6 billion to build out the solar plus storage portfolio and further catalyze the transition to clean energy. The investments will serve as a platform for Intersect's entry into new markets, including green hydrogen and other decarbonization technologies.

Concurrent with the closing of the construction financing, Intersect secured approximately $775 million in tax equity from Morgan Stanley Renewables, U.S. Bank and a Fortune 100 technology company. With respect to the construction financing, MUFG and an International Retail Banking Company served as co-lead arrangers, while NORD/LB, KeyBanc Capital Markets, Helaba, CoBank, Bank of America and Zions Bancorporation acted as joint lead arrangers. CoBank provided the operational letters of credit, and the previously announced commitments were provided by HPS Investment Partners and Co-Investors.

Orrick previously advised Intersect on closing eight transactions representing an aggregate of $2.6 billion of financing commitments for the portfolio and a US$750 million growth equity investment from TPG Rise Climate, Climate Adaptive Infrastructure and Trilantic Energy Partners North America. The team was led by Louise Gibbons, Chris Moore, Tom Glascock, Giji John and Kristin Seeger and included John Donaleski, Susan LongLisa Magged, Peter Richmond, Dao Huynh, Gil Shefer, Devin Canavan, Andrea Memovic, Helen Aki, Grace Lentz, Li Shen, Nathan Bishop, Paige Griffiths, Seth Norris, Molly Jergenson, Diana Tarrazo, Lauren Estell and Sarah Forden.