Spearmint Energy has closed a $48m project finance term loan from Manulife, a global financial services provider.
The term loan will support the commercial operation of Revolution, Spearmint’s 150MW/300MWh battery energy storage system (BESS) project located in West Texas’ ERCOT power market.
Cory Magnuson, Chief Financial Officer of Spearmint, said, “We are proud to partner with Manulife, globally recognised for its strong track record of identifying key market leaders and providing capital with meaningful outcomes, for one of its first ever investments in standalone battery storage.
“Our successful closing of this loan amidst a highly competitive bidding process reflects Spearmint’s leading position within Texas’ fast-growing energy storage market as well as Revolution’s success to date in supporting grid stability throughout ERCOT.”
Michael Switt, Vice President, Global Power & Infrastructure Debt, at Manulife, said: “We are excited to participate in Revolution’s financing and support the deployment of grid-scale battery storage across ERCOT and the US broadly.
“Spearmint has distinguished itself from peers through its efficient operation, innovative approach, and diversified pipeline in key energy markets, and we look forward to the long-term positive impact our investment will have on enabling the renewable energy transition in the United States.”
The close of the project finance term loan follows the successful completion and launch of commercial operations of Revolution announced earlier this year, as well as Spearmint’s prior securing of $92m in tax equity financing from Greenprint Capital Management as well as $200m in term loan financing from Aiga Capital Partners and Nuveen.
Javelin Capital supported Spearmint as financial advisor on the transaction and Paul Hastings LLP served as legal counsel to Spearmint.
Manulife was supported on the transaction by Day Pitney as legal counsel.