CIM Group’s Permanent Power Company announced that it has closed an approximately $600 million construction financing facility for its Grape solar and energy storage project in California.
The financing package includes an approximately $372.3 million construction-to-term loan, an approximately $166.7 million tax credit transfer bridge loan, and an approximately $61.3 million letter of credit facility.
Grape is a 246.4 MWac solar photovoltaic project with 150 MWac, or 600 MWh, of battery energy storage systems. The project is located in Westlands Solar Park, one of the largest permitted solar parks in the U.S., which spans more than 20,000 acres in California’s San Joaquin Valley.
Permanent Power Company recently signed a long-term power purchase agreement with an investment-grade regulated energy service provider for the full capacity of Grape’s solar generation and battery storage.
The project is now under construction and is expected to support more than 400 construction jobs. Once completed, Grape is expected to generate enough clean energy to power more than 86,000 California homes annually.
Upon completion, Grape will become part of Permanent Power Company’s broader portfolio, which is expected to include approximately 1,200 MWac of solar PV and 690 MWac, or 2,760 MWh, of battery energy storage systems.
Permanent Power Company previously secured a $400 million financing commitment from funds and accounts managed by HPS Investment Partners, part of BlackRock Private Financing Solutions. The commitment supports the company’s plan to deliver power, energy storage, and transmission solutions across the U.S., with a focus on assets located in Qualified Rural Opportunity Zones.
Permanent Power Company is a CIM-backed energy holdings platform formed to capitalize on long-term trends in U.S. energy markets, including demand for reliable, diversified power generation and related infrastructure.
Support: Truist is serving as the administrative agent under the facility, and Wells Fargo is serving as the collateral agent.
KEY QUOTES:
“This financing is an important milestone for Permanent Power Company that reflects the confidence our capital partners have in our ability to develop and deliver large-scale power generation and energy storage projects. Grape is particularly notable given that an investment-grade offtaker signed a long-term PPA for its full solar and storage capacity prior to completion, underscoring both the strength of the project and the approach we bring to our platform.”
Avi Shemesh, Co-Founder and Principal of CIM Group
