Spearmint Energy, a next-generation energy company, has closed more than US$250 million in financing for, and has begun the construction of, Tierra Seca and Seven Flags, two 100 MW/200 MWh battery energy storage systems (BESS) located in Del Rio and Laredo, respectively, within Texas’ ERCOT power market.
The financing package comprises, in aggregate, US$59 million in construction to term loan facilities (CTL) provided by Manulife, US$95 million in Tax Equity Bridge Loan (TEBL) facilities, provided by East West Bank and Investec Inc, and US$98 million in tax equity commitments from Sugar Creek Capital.
EWB and Investec served as Coordinating Lead Arrangers, Joint Bookrunners, and Green Loan Structuring Agents for the TEBL facilities, while Investec will serve as Administrative Agent for the TEBL facilities. EWB will serve as Collateral Agent and Depository Bank for the TEBL and CTL facilities.
Andrew Waranch, Founder, President, and CEO of Spearmint, commented: “We are thrilled to secure this financing for the Tierra Seca and Seven Flags, which demonstrates the confidence world-class investors have in Spearmint’s ability to develop and efficiently operate grid-scale energy storage infrastructure. As rapidly increasing power demand continues to put pressure on grid stability, we are pleased to accelerate the development of these two projects to facilitate increased energy availability in ERCOT.”
Both projects are currently under construction by M.A. Mortenson Company, a leading power engineering, procurement, and construction contractor with deep experience in BESS. Both projects will also utilise the state-of-the-art PowerTitan 2.0 energy storage platform provided by Sungrow Power Supply Co. Ltd, a leading global inverter and BESS solutions supplier. Upon completion of construction and commencement of their operations, Tierra Seca and Seven Flags will add over 200 MW/ 400 MWh of storage capacity to the ERCOT grid, helping to deliver reliable, affordable, and efficient power to homes and businesses throughout Texas.
Cory Magnuson, CFO of Spearmint, added: “Manulife, East West Bank, Investec, and Sugar Creek Capital are globally recognised investors with strong expertise in energy and infrastructure. We are proud that they have elected to partner with Spearmint in our mission of providing safe, stable, and affordable power to the grid.”
Paul Hastings LLP served as legal counsel to Spearmint, Day Pitney LLP represented Manulife, Milbank LLP represented East West Bank and Investec, and Leverage Law Group LLC represented Sugar Creek.
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