Cypress Creek Renewables Recapitalizes 92 MW of Operating Solar Fleet, Becoming Sole Asset Owner
DURHAM, NC – October 29, 2020 – Cypress Creek Renewables today announced that it has completed a tax equity buyout and refinancing of project-level debt for 92 megawatts (MW) of its solar energy portfolio across North Carolina, making Cypress Creek the sole owner of these projects. BNP Paribas acted as the primary lender and lead arranger for the transaction.
In the renewable energy industry, project sponsors are typically afforded an opportunity to purchase the equity interests held by tax equity investors in projects after the first five years of operations. This is the first such tax equity buyout transaction Cypress Creek has completed to date, and the company plans to pursue similar transactions to acquire sole ownership of more projects in its operating fleet going forward.
Cassidy DeLine, Vice President of Project Finance for Cypress Creek, said, “We approached our first refinancing with a holistic, forward-looking strategy: to set up a new debt facility for our initial 92 MW of operating assets reaching their tax equity buyouts, while also establishing a clear framework to expand that facility to include large portions of the remainder of our 1.6 GW operating fleet. In our efforts to grow into one of the top U.S. independent power producers, it was key for us to capture this efficiency and low cost of capital, helped by today’s low interest rate environment.”
Ravina Advani, Head of Energy Natural Resources & Renewables Coverage at BNP Paribas, stated: “As a bank committed to numerous sustainability initiatives, we were delighted to assist Cypress Creek with this important transaction. It further demonstrates our commitment to the renewable energy sector and global financing target of € 18 billion by 2021.”
Cypress Creek was represented by Kirkland & Ellis LLP as its lead transaction counsel and by Kilpatrick Townsend & Stockton LLP as its North Carolina counsel. BNP Paribas was represented by White & Case LLP as its lead transaction counsel with McGuireWoods LLP acting as North Carolina counsel.
Cypress Creek provides ongoing operations and maintenance and asset management for its entire fleet.
About Cypress Creek Renewables
Cypress Creek Renewables is powering a sustainable future, one project at a time. We develop, finance, own and operate utility-scale and distributed facilities across the country. With more than 10.3 gigawatts of solar developed and more than 3.4 gigawatts under management, Cypress Creek is one of the country’s leading solar and storage companies. For more information about Cypress Creek, please visit cypresscreekenergy.com.
About Cypress Creek Energy
Cypress Creek Energy is a U.S. independent power producer and developer of energy infrastructure designed to meet the nation’s rapidly growing demand for reliable, cost-effective, and sustainable electricity. Built on more than a decade of experience developing, financing, owning, and operating energy assets, the company delivers integrated solar, storage, and firm capacity solutions that serve utilities, communities, and large-load customers.
Cypress Creek believes energy infrastructure should create lasting value beyond generating affordable, sustainable electricity. Through responsible development, long-term ownership, and meaningful community partnerships, the company is committed to strengthening the places where it lives, works, and builds. Since inception, Cypress Creek has commercialized 19 GW of projects and today has more than 6.8 GW of assets operating or under construction, along with a 19 GW development pipeline. Through Cypress Creek Solutions, its in-house operations and maintenance platform, their experienced team manages more than 8.6 GW of energy assets for both Cypress Creek and third-party owners across 24 states.