Carlyle-Backed Copia Power closes $1.2 billion construction loan for Arizona projects
Dana Point, CA and Washington, DC – Copia Power (Copia) today announced it has executed a $1.2 billion construction-to-term loan financing to fund the construction of its Harquahala Sun 1 and Harquahala Sun 2 solar plus storage projects.
These first two phases of Copia’s Harquahala Sun complex, located in Maricopa County, Arizona, outside of Phoenix, are expected to be completed in early 2025 and produce 450 MW of solar generation annually and include a 300 MW/1200 MWh battery energy storage system. “The project team has worked closely with local landowners and stakeholders for over three years to bring these projects to life. We are excited to deliver the first renewable power generation to the Delaney Substation, which is a great milestone for Arizona renewables” said Garret Bean, who leads Strategic Development at Copia. SOLV Energy will build the projects which are expected to generate more than 700 construction jobs that will be sustained through subsequent phases of development and construction.
The financing, which was executed by Crédit Agricole CIB, BNP Paribas, Natixis CIB, and SMBC as Coordinating Lead Arrangers, will provide over $1.2 billion in funding to support the construction and operation of Copia’s Harquahala projects. The financing is one of the first structured with a non-recourse tax credit transfer bridge and term loan takeout, leveraging the flexibility provided by the IRA’s tax credit transfer provisions rather than the more traditional tax equity and term loan takeout. This construct provides the projects with the ability to optimize the monetization of tax benefits while providing long-term capital structure flexibility.
Brian Callaway, Copia’s CFO, said “We are thrilled to announce Copia Power’s inaugural project financing. Right out of the gate, Copia is laying the groundwork for the next generation of project finance in a post-IRA world. Doing it at this scale reflects the Copia team’s creative approach and our unparalleled bench of experience in infrastructure development and capital markets. With the staunch support of our sponsor, Carlyle, and our CLA partner banks, Copia is leading this space with quality execution.”
Copia is backed by The Carlyle Group, who has committed more than $700 million in equity to the platform to date. “The Harquahala project is a testament to the tenacity and creativity of the team as well as the strength of Carlyle’s sponsorship to create these types of fantastic outcomes,” said David Gluck, Managing Director at Carlyle and lead board member for Copia. “Just as exciting is the volume of phases remaining on this 14,000-acre campus and the scale of additional projects in the Copia pipeline.”
Stoel Rives LLP served as the lead Borrower’s counsel on the deal, with Snell & Wilmer and Holland & Hart LLP serving as local counsel. Milbank served as CLA’s counsel with Ballard Spahr LLP serving as local counsel.
Paragon Capital and Carlyle Capital Markets served as Copia’s advisors.
About Copia Power
Copia Power is a Carlyle-backed renewable energy platform committed to developing, constructing, and owning large-scale infrastructure assets in the U.S. to accelerate decarbonization in all areas of the economy. Copia Power is actively developing more than 17 GW of solar and storage projects across the U.S.
Further information is available at www.copiapower.com.
About Carlyle
Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $382 billion of assets under management as of September 30, 2023, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 2,200 people in 28 offices across four continents. Further information is available at www.carlyle.com. Follow Carlyle on X @OneCarlyle.
Contacts:
Copia Power
Katie Heath
katie.heath@copiapower.com
Carlyle
Brittany Berliner
+1 (212) 813-4839
brittany.berliner@carlyle.com
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