Solar Frontier Americas Secures Financing for Mustang Two Solar Project

Mustang Two. Image courtesy of Recurrent Energy

Solar Frontier Americas, the U.S.-based subsidiary of Idemitsu Kosan Co., an independent power producer and solar development firm, has closed on the tax equity commitment and debt financing for a 150MWac/210MWp solar project. Dubbed Mustang Two, the facility will be located in Kings County, Calif., and represents SFA’s largest project and financing to date.  

KeyBank and Mizuho Bank provided $176 million and Morgan Stanley Renewables has committed to make up to $120 million in tax equity financing. CohnReznick Capital acted as financial advisor and Stoel Rives served as Solar Frontier Americas’ counsel in the deal.

Mustang Two is currently under construction on a 1,400-acre site and is expected to create some 400 jobs during peak construction. The solar facility is anticipated to begin commercial operation in 2020. Solar Frontier America, which acquired the project in December 2018 from Canadian Solar’s subsidiary Recurrent Energy, will remain its owner and operator.

The renewable power generated by Mustang Two will be sold through power purchase agreements with Peninsula Clean Energy (100 megawatts), which serves San Mateo County, and Modesto Irrigation District (50 megawatts). The two contracts will power with clean electricity 37,500 homes combined.