• Cypress Creek Renewables completes acquisition of solar energy portfolio

December 2020

US-based utility scale solar developer Cypress Creek Renewables announced the completion of a tax equity buyout and refinancing of project-level debt for its 92 megawatt solar energy portfolio in North Carolina, making it the sole owner of these projects

The developer’s landmark financing, which closed in October 2020, represents its first large-scale tax equity buyout transaction and leverages the opportunity that project sponsors have to purchase the equity interest held by tax equity investors in projects after the first five years of operations. BNP Paribas was primary lender and lead arranger on the transaction with Deutsche Bank Trust and Agency Services acting as collateral agent and account bank.

For Deutsche Bank Trust and Agency Services, the project is anew highlight in its US portfolio. Brian Studdert, Head of the business in the Americas, shared that the transaction builds upon the successful ongoing relationship with Cypress Creek and the open communication shared by both institutions. “These traits were especially critical for the project partnership during a challenging year for all teams working remotely across the country and overcoming many market uncertainties and delays caused by the pandemic and political atmosphere,” he added.

Cassidy Deline, Vice President of Project Finance for Cypress Creek, said: “We approached our tax equity buyout and operating portfolio refinancing holistically, closing this initial fund with BNP Paribas and setting up a framework for future replica transactions for our 1.6 gigawatt operating fleet. With these plans in mind, it was vital that we select the right partner as collateral agent and account bank. We were impressed with Deutsche Bank Trust and Agency Services’ responsiveness and professionalism and look forward to more transactions together.”

Deutsche Bank Trust and Agency Services was represented by Holland & Knight on the deal. 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.