Fund Includes Debt Financing Package Led by MUFG, Partial Equity Sell-Down of 95 MW Distributed Generation Portfolio, and Sale of Tax Credits
ForeFront Power, a leading developer and asset manager of commercial and industrial-scale (C&I) solar energy and battery storage projects, has closed its ninth distributed generation fund, including a debt financing package with a consortium of leading financial institutions, as well as a partial equity sell-down of a 95 megawatt (MW) distributed generation portfolio to an unnamed investor. The investment tax credits from the portfolio, which spans four U.S. states and more than 100 behind-the-meter solar energy and battery storage projects, are subject to a $210 million purchase commitment from a separate counterparty. The combined, undisclosed capital from the debt financing, the partial equity sell-down, and the $210 million tax credit sale will enable ForeFront Power to advance construction of its development pipeline over the next two years while deploying cash to support continued platform growth.
MUFG Bank, Ltd. acted as lead arranger and administrative agent for the debt financing, with participation from collateral agent Cadence Bank, and additional co-lenders Sumitomo Mitsui Trust Bank and Mitsubishi HC Capital America.
“ForeFront Power’s ninth fund builds on the best features of our prior transactions—closing efficiency, flexibility, and repeatability—along with a market-leading cost of capital from reliable investors and lenders,” said ForeFront Power’s CFO, Bryan Eckstein. “We are pleased to have the support of leading financial institutions, including MUFG, whose deep experience with the complexities of distributed generation financing was instrumental in structuring for the scale and operational practicality required in this diversified asset class.”
“MUFG is proud to have served as coordinating lead arranger (CLA) for the successful debt component of ForeFront Power’s ninth distribution generation fund,” said Takaki Sakai, Managing Director at MUFG. “At a time of growing energy needs and rising electricity rates, ForeFront Power is a national leader in helping private companies and public agencies control electricity spending and bolster energy security through behind-the-meter solar and storage technologies. We look forward to continuing to support ForeFront Power’s market-leading work as a proven and trusted sponsor.”
“Closing this fund provides the certainty and stability required for ongoing distributed energy resource development for our customers and our shared communities,” added ForeFront Power’s Eckstein.
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