Pivot Energy announced the completion of a financing facility worth $203 million to support a portfolio of solar projects across several states.
Silicon Valley Bank (SVB), a division of First Citizens Bank, will oversee the debt facilities, while Foss & Company (Foss) will make the initial tax equity investment. The portfolio, comprising 35 community solar and C&I projects, is expected to reach commercial operation between Q2 2023 and Q2 2024, with a total capacity of 100 MWdc.
This is Pivot Energy’s second portfolio of projects that the company will build, own, and operate since its acquisition by ECP in June 2021.
Pivot Energy said the community solar subscribers in this portfolio include commercial clients, municipalities, healthcare facilities, food service and retail, residential customers, and approximately 8,000 low-to-moderate income (LMI) households.
This portfolio represents the largest LMI community solar portfolio developed to date, demonstrating strategic diversity across project types, client offtake arrangements, and geographic locations, spanning across Colorado, Minnesota, Illinois, New York, Hawaii, Maryland, and California. The diversity of geography and customer base will help bring clean solar energy to more Americans and strengthen the portfolio’s long-term financial outlook.
SVB led the debt transaction, which included a construction loan, tax equity bridge loan, and term loan. The financing was syndicated with J.P. Morgan, National Bank of Canada, Bank United, Cadence and Comerica, with SVB serving as the Coordinating Lead Arranger (CLA), Sole Bookrunner and Administrative Agent.
Foss provided the initial tax equity investment, which, combined with the debt financing, will enable Pivot to construct, operate, and own the portfolio. J.P. Morgan acted as CLA and National Bank of Canada, Bank United, Cadence, and Comerica acted as Lenders. National Bank of Canada provided the Letter of Credit Facility.
This transaction marks the first syndicated loan closing that SVB has led since its acquisition by First Citizens Bank. SVB is a pioneer in community solar financing solutions and remains a preeminent leader in the market.
This transaction is an indication of First Citizens Bank’s commitment to continue lending to this critical sector. J.P. Morgan’s participation in the financing marks its first debt financing in the community solar market. SVB and Foss & Company were also the lead financing parties for Pivot’s inaugural portfolio that closed in 2022.