Tenaska Refinances its 2nd Solar Facility in California’s Imperial Valley through the Issuance of U.S. Private Placement Green Bond
Tenaska has closed refinancing on its 150-megawatt (MW) Tenaska Imperial Solar Energy Center West project through an issuance of $400 million of senior secured, long-term notes. The private placement received an investment-grade rating of BBB by Kroll. “Tenaska Imperial West continues to be a successful project, and the market responded favorably,” said Greg Van Dyke, Tenaska’s chief financial officer. “This speaks to the financial strength of the project and to Tenaska’s reputation in the industry.”
Tenaska Imperial West began full commercial operation in April 2016 under a 25-year power purchase agreement with San Diego Gas and Electric (SDG&E). The photovoltaic solar field, located near Seeley in California’s Imperial Valley, can produce enough power for approximately 55,000 homes. At the time of its initial financing in 2014, Tenaska Imperial West was one of the largest solar facilities financed in the U.S. commercial bank market. An affiliate of Tenaska is the owner of Tenaska Imperial West, which is one of two utility-scale solar projects Tenaska has developed in the Imperial Valley. Tenaska Imperial Solar Energy Center South can produce up to 130 MW of electricity under a 25-year power purchase agreement with SDG&E. Morgan Stanley & Co. LLC, MUFG Securities America, Inc. and BNP Paribas Securities Corp. acted as co-placement agents for the senior secured notes. The Bank of Tokyo-Mitsubishi UFJ, Ltd. and BNP Paribas are providing letters-of-credit and working capital facilities. Riverside Risk Advisors assisted Tenaska in designing and executing its interest rate risk management program.
The senior secured notes have been designated as green bonds as Tenaska Imperial West, being a renewable energy project, contributes to greater environmentally sustainability. Sustainalytics, an independent environmental, social and governance (ESG) research, ratings and analysis firm, provided a second-party opinion endorsing Tenaska Imperial West’s Green Bond Framework. The opinion follows the guidance provided by the Green Bond Principles of 2017.
Tenaska, based in Omaha, Nebraska, is one of the leading independent power producers in the United States, with regional offices in Dallas, Denver, Pittsburgh, Philadelphia, Boston and Calgary, Alberta and Vancouver, British Columbia, Canada. Forbes magazine ranks Tenaska among the largest privately held U.S. companies. Tenaska and its affiliates have developed approximately 10,000 megawatts (MW) of natural gas-fueled and renewable power generation and manage operations for approximately 7,000 MW of power generation consisting of nine power plants.
Tenaska formed CSOLAR IV West, LLC to build, own and manage Tenaska Imperial Solar Energy Center West. Tenaska affiliates also market natural gas and electric power and provide energy risk management services. Tenaska is involved in asset acquisition, natural gas fuel supply and transportation systems, and electric transmission development.