ForeFront Power has closed its ninth distributed generation fund, securing a significant blend of debt financing, a partial equity sale of a 95-megawatt portfolio, and a $210 million tax credit purchase commitment, which together position the company for accelerated growth. The capital package includes a debt facility arranged by MUFG Bank, with participation from Cadence Bank as collateral agent and co-lenders Sumitomo Mitsui Trust Bank and Mitsubishi HC Capital America. The fund also includes a partial equity sell-down of a substantial multi-state distributed generation portfolio to an undisclosed investor.
The portfolio in the transaction spans more than 100 behind-the-meter solar and battery storage projects across four U.S. states. The infusion of capital from debt financing, the equity transaction, and the tax credit sale is expected to support ForeFront Power’s development pipeline over the next two years while providing additional liquidity to expand the company’s platform and energy solutions footprint.
ForeFront Power, headquartered in San Francisco, provides commercial and industrial solar, battery storage, fleet electrification, and asset management services across the U.S. and Mexico. With more than 1,900 completed behind-the-meter and community solar projects totaling over 1.6 gigawatts DC, the company serves customers in business, government, healthcare, education, and community energy sectors. The new fund is designed to strengthen its ability to meet rising demand for distributed clean energy infrastructure.
The financing marks another milestone for the company as it continues building one of the most extensive distributed generation development pipelines in the market. Leadership at both ForeFront Power and MUFG noted the importance of flexible, repeatable financing structures that support a scalable national portfolio of clean energy assets.
KEY QUOTES:
“MUFG is proud to have served as coordinating lead arranger (CLA) for the successful debt component of ForeFront Power’s ninth distribution generation fund. At a time of growing energy needs and rising electricity rates, ForeFront Power is a national leader in helping private companies and public agencies control electricity spending and bolster energy security through behind-the-meter solar and storage technologies. We look forward to continuing to support ForeFront Power’s market-leading work as a proven and trusted sponsor.”
Takaki Sakai, Managing Director, MUFG
“ForeFront Power’s ninth fund builds on the best features of our prior transactions—closing efficiency, flexibility, and repeatability—along with a market-leading cost of capital from reliable investors and lenders.”
“We are pleased to have the support of leading financial institutions, including MUFG, whose deep experience with the complexities of distributed generation financing was instrumental in structuring for the scale and operational practicality required in this diversified asset class.”
“Closing this fund provides the certainty and stability required for ongoing distributed energy resource development for our customers and our shared communities.”
Bryan Eckstein, Chief Financial Officer, ForeFront Power
