TSL Express Daily News

The debt warehouse facility and structured equity investment will support construction of 300 Megawatts of U.S. community solar projects and is Pivot's largest financing agreement to date

DENVER, Nov. 21, 2024 /PRNewswire/ -- Pivot Energy ("Pivot"), a leading, national renewable energy provider and independent power producer, announced today two transformational financing arrangements, marking a critical step toward establishing innovative and scalable financing facilities. Pivot has successfully secured a $450 million debt warehouse facility, led by long-time partner, First Citizens Bank, which includes new strategic partner ATLAS SP Partners ("ATLAS"), the warehouse finance and securitized products business majority owned by Apollo funds. 

In addition, Pivot closed on a structured equity investment from HA Sustainable Infrastructure Capital, Inc. ("HASI") in a new project joint venture (JV). Together, these innovative financing structures will support the construction of 300 Megawatts DC (MWdc) of distributed generation projects that Pivot is developing across the U.S. The portfolio consists of 96 projects, the majority of which are community solar with the remaining being single off-take Power Purchase Agreements for commercial clients. The projects are expected to be operational within the next two years, located across nine states: California, Colorado, Delaware, Hawaii, Illinois, Maryland, Minnesota, New York, and Virginia.

"Pivot is redefining how to finance portfolios of distributed generation solar projects at scale which reflects our mission to advance the renewable energy transition," said Bret Labadie, Chief Financial Officer of Pivot. "We are thrilled to expand our longstanding partnership with First Citizens Bank and welcome new relationships with key institutions like ATLAS and HASI, all of which are deeply respected in the clean energy space."

$450 Million Debt Warehouse Facility
The $450 million debt warehouse facility is one of the largest-ever raised for distributed generation solar. It is led by First Citizens Bank and includes ATLAS, with support from existing lenders Bank United, Comerica, and Cadence Bank. The new strategic relationship with ATLAS provides additional debt takeout optionality by leveraging ATLAS' deep expertise in the solar asset-backed securitization (ABS) space.

This warehouse facility is specifically designed to meet the challenges of developing and constructing community-scale solar projects and will support the initial portfolio of community solar projects underway. The shared vision with lenders is to upsize and extend annually to support growing project volumes, further enabling long-term sustainable growth.

"We are pleased to build upon our partnership with Pivot Energy," said Bret Turner, Managing Director of First Citizens Bank's Energy Finance business. "Our team worked collaboratively to solve a market obstacle in distributed generation, designing an innovative construction warehouse that will further help the company scale efficiently."

"We are pleased to support Pivot with financing to develop, build and manage community-level solar and energy storage projects," said Spencer Hunsberger, Head of Energy Origination at ATLAS. "Leveraging our expertise in securitizing solar-related assets, we are confident that Pivot can continue to make progress on its energy transition goals and meet the growing need for renewable energy solutions across the United States."

Structured Equity Investment from HASI in Project JV
This JV with HASI marks an exciting step for Pivot to further accelerate the deployment of solar projects. It is initially designed to support the same portfolio of projects discussed above and opens up the opportunity to sell tax credits directly to large corporations as opposed to relying on complex tax equity structures.

"We admire Pivot's strategy and proven success in powering progress for local communities at scale," said Daniela Shapiro, Senior Managing Director of HASI. "We are proud to partner with Pivot in this new JV to support their mission to increase equitable access to clean energy and cost savings for local communities." 

These financing facilities are designed to work tightly together to enhance Pivot Energy's ability to develop, construct, own, and operate distributed generation solar projects for years into the future. These operational efficiencies align with Pivot's strategy of making solar energy accessible to more communities and businesses. By combining a large-scale debt facility with a structured equity investment in the projects, Pivot is positioned to deliver impactful renewable energy projects to help meet growing demand for clean energy. 

CRC-IB acted as exclusive financial advisor to Pivot, and Stoel Rives acted as exclusive legal advisor. Milbank acted as legal advisor to First Citizens Bank, and Sheppard Mullin acted as legal advisor to HASI.

About Pivot Energy
Pivot Energy is a renewable energy provider and independent power producer that develops, finances, builds, owns, and manages solar and energy storage projects. Pivot leverages its renewable expertise to provide a range of unique offerings that accelerate the clean energy transition by helping companies and communities attain impactful decarbonization. Pivot is a U.S.-based Certified B-Corporation that proudly follows a corporate strategy aimed at providing a positive impact on society as measured by Environmental stewardship, Social leadership, and responsible Governance factors. Pivot Energy is an ECP portfolio company. Learn more at pivotenergy.net.

About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in Raleigh, N.C., First Citizens has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of more than 500 branches and offices in 30 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; innovation banking serving businesses at every stage; and a nationwide direct bank. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $200 billion in assets and a member of the Fortune 500™. Discover more at firstcitizens.com.

About ATLAS SP
ATLAS SP is a global investment firm providing stable capital, financing, advisory and institutional products to market participants seeking innovative and bespoke structured credit and asset backed solutions. We're proud to build upon a legacy of client excellence that includes certainty of execution, deep expertise and full-service capabilities across the asset management landscape. For more information, visit www.atlas-sp.com.

About HASI
HASI (NYSE: HASI) is a leading climate positive investment firm that actively partners with clients to deploy real assets that facilitate the energy transition. With more than $13 billion in managed assets, our vision is that every investment improves our climate future. For more information, please visit hasi.com.