US-based renewable power producer BrightNight and its joint venture partner Cordelio Power have secured a $414m construction credit facility for the Box Canyon solar power project.
Box Canyon is a 300MW utility-scale solar facility located in Pinal County, Arizona, and is owned by BOCA, in which BrightNight and Cordelio are co-members.
The construction of the 300MW solar power project started in December last year and is expected to begin operation in the first half of 2025.
Salt Lake City, Utah-based national bank Zions Bancorporation served as the administrative agent and coordinating lead arranger for the transaction.
The National Bank of Canada, Royal Bank of Canada, Sumitomo Mitsui Trust Bank, and Canadian Imperial Bank of Commerce served as joint lead arrangers.
BrightNight CEO Martin Hermann said: “Along with our recent $375m corporate credit facility with a strong bank group, this successful financing is a significant milestone in funding the buildout of our extensive 37GW renewable power portfolio.
“We deeply value our partnership with SPPA, Pinal County and the state of Arizona. This funding will bring much-needed clean power, hundreds of skilled jobs, economic development and energy security to this strategic and rapidly growing region.”
In December 2022, BOCA signed a 20-year power purchase agreement (PPA) with the Southwest Public Power Agency (SPPA).
SPPA provides power to 25 different smaller electric co-ops and utilities throughout Arizona.
Box Canyon represents the largest renewable energy procurement in SPPA’s history and a major step in Arizona`s clean energy transformation.
BrightNight CFO Brian Boland said: “A critical part of being a next-generation IPP and building out our portfolio is securing the right capital to deliver on our ambitious plans.
“Reaching financial close on a utility-scale project of this magnitude is an extensive undertaking. These transactions are complex and require extensive due diligence and strong partners.
“I want to thank the BrightNight team, our participating banks, and project partners in supporting us on this project that will benefit SPPA, Arizona, and our investors.”
BrightNight is leading the development of the Box Canyon, as part of its joint venture with Cordelio Power.
The project, a part of BrightNight`s 37GW renewable power portfolio, is expected to produce adequate electricity to power 77,000 homes and businesses in Arizona each year.
It is designed to deliver maximum performance and high value at the lowest cost using BrightNight’s advanced artificial Intelligence (AI) platform, dubbed PowerAlpha.
In addition to providing clean, reliable, and affordable energy, the renewable energy project will also offset nearly 600 metric tons of CO2 emissions every hour, said BrightNight.
