Innergex Renewable Energy Inc. has closed the construction financing, tax equity commitment and a 7-year term loan facility for the 200 MW Hillcrest solar photovoltaic project located in Brown County, Ohio.
In aggregate, the $191.8 million financing was led by CIT’s Power and Energy group and includes MUFG and Mizuho, as well as Wells Fargo as the tax equity investor.
“Securing Hillcrest’s financing is an important step forward, and we are very pleased with the terms of the agreement we have reached,” says Michel Letellier, president and CEO of Innergex.
“This agreement confirms Innergex’s ability to raise funds even during the harshest economic environment seen in decades. We appreciate the support and trust demonstrated by our lenders and our tax equity partner throughout this process,” he adds.
The total construction costs are estimated at $279.5 million and will be partly financed through a $82.0 million construction term loan and a $109.8 million tax equity bridge loan provided by a lender group composed of CIT Group, MUFG and Mizuho. Innergex will fund the remaining $87.7 million equity commitment. At commercial operation, Wells Fargo’s Renewable Energy & Environmental Finance group will provide the tax equity investment used to repay the tax equity bridge loan.
The project should receive a federal investment tax credit (ITC) sized to approximately 30% of the project’s eligible value. Hillcrest is expected to produce a gross estimated long-term average of 413.3 GWh and a $10.7 million projected adjusted EBITDA on average for the first five years of operation.
A power purchase agreement was signed last November with an investment grade rated U.S. corporation for Hillcrest’s electricity production, which will be effective when the facility reaches its commercial operation. Innergex is required not to disclose the terms and conditions of the agreement until the other party has made public the information.
Photo: Innergex’s Sustainability web page.