Spearmint Energy—a next-generation energy company bringing stable, secure, and cost-effective energy solutions to the power grid with large-scale battery storage—announced it has successfully closed over $250 million in financing for and started construction of Tierra Seca and Seven Flags, two 100 MW / 200 MWh Battery Energy Storage Systems (BESS) located in Del Rio and Laredo, respectively, within Texas’ ERCOT power market.
This financing package comprises, in aggregate, $59 million in Construction-to-Term Loan facilities (CTL) provided by Manulife, $95 million in Tax Equity Bridge Loan facilities (TEBL) provided by East West Bank (EWB) and Investec, and $98 million in tax equity commitments from Sugar Creek Capital.
These projects are currently under construction by M.A. Mortenson Company, a leading power engineering, procurement, and construction (“EPC”) contractor with deep experience in battery energy storage. And these projects will also utilize the state-of-the-art PowerTitan 2.0 energy storage platform provided by Sungrow Power Supply, a global inverter and energy storage system solutions supplier. Upon the completion of construction and commencement of their operations, Tierra Seca and Seven Flags will add over 200 MW / 400 MWh of storage capacity to the ERCOT grid, helping to deliver reliable, affordable, and efficient power to homes and businesses throughout Texas.
Advisors: EWB and Investec served as Coordinating Lead Arrangers, Joint Bookrunners, and Green Loan Structuring Agents for the TEBL facilities, while Investec will serve as Administrative Agent for the TEBL facilities. EWB will serve as Collateral Agent and Depository Bank for the TEBL and CTL facilities. Paul Hastings served as legal counsel to Spearmint, Day Pitney represented Manulife, Milbank represented East West Bank and Investec, and Leverage Law Group represented Sugar Creek.
KEY QUOTES:
“We are thrilled to secure this financing for Tierra Seca and Seven Flags, which demonstrates the confidence world-class investors have in Spearmint’s ability to develop and efficiently operate grid-scale energy storage infrastructure. As rapidly increasing power demand continues to put pressure on grid stability, we are pleased to accelerate the development of these two projects to facilitate increased energy availability in ERCOT.”
– Andrew Waranch, Founder, President, and Chief Executive Officer of Spearmint
“Manulife, East West Bank, Investec and Sugar Creek Capital are globally recognized investors with strong expertise in energy and infrastructure. We are proud that they have elected to partner with Spearmint in our mission of providing safe, stable and affordable power to the grid.”
– Cory Magnuson, Chief Financial Officer of Spearmint
