Solar Frontier secures financing for 210-MW Mustang Two solar project

• Solar Frontier Americas has closed on the tax equity commitment and debt financing for its 210-MW Mustang Two solar project in Kings County, California.

Lenders for the approximately $176 million construction-to-term facility are KeyBank N.A. and Mizuho Bank. Morgan Stanley Renewables has committed to make up to $120 million in tax equity financing for Mustang Two. CohnReznick Capital served as financial advisor and Stoel Rives served as Solar Frontier Americas’ counsel in the deal.

Located on a 1,400 acre site, the Mustang Two project is currently under construction and is slated to begin commercial operation in 2020. Once complete, the project will be owned and operated by Solar Frontier Americas.

“Obtaining financing from these top tier lenders and tax equity provider is yet another major milestone and accomplishment for Solar Frontier Americas’ IPP and development business. SFA and our parent company, Idemitsu, continue to expand our US business with extraordinary partners dedicated to the growth of renewable power,” said Charles Pimentel, CEO of Solar Frontier Americas’ IPP business unit.

The renewable power generated by Mustang Two will be sold through power purchase agreements with Peninsula Clean Energy, which serves San Mateo County, and Modesto Irrigation District. The combined energy generation from the two contracts will power 37,500 homes with clean electricity.