US PV developer Urban Grid has closed a senior secured term loan facility for up to US$100 million with New York-based private credit manager and asset-based lender Crayhill Capital Management LP.
This funding will be used to finance the late-stage development of more than 5GW of utility-scale solar projects under development by Urban Grid. The facility is also designed to finance the significant capital expenditures required by projects before they enter into the construction phase.
Urban Grid has developed a steady pipeline of PV projects, including two recent installations purchased by Dominion Energy that provide over 340MW of renewable power to a new datacentre in Virginia operated by Facebook.
Frank Depew, CEO of Urban Grid, said: “The capital solution provided by Crayhill, coupled with their deep experience in utility-scale solar development and financing, will allow us to expand, build and monetise our development portfolio. This facility allows our growing team of solar development experts to focus exclusively on delivering high-quality solar projects to our institutional clients.”
Josh Eaton, managing partner of Crayhill Capital, added: “Crayhill is excited to partner with Urban Grid's experienced team to finance its development portfolio and fuel the next evolution of its growth strategy. Strong demand for solar assets from institutional investors, along with government tax incentives scheduled to be phased out over the next few years, create a favorable environment to provide bridge capital solutions for entire solar development portfolios. Crayhill's expertise in providing asset-based capital solutions, combined with our extensive experience in solar project financing, is well suited to help Urban Grid successfully scale its business.”