Narrative
Full Description
Project narrative
On November 3, 2023, a syndicate of 5 lenders — including Bank of China (BOC) — entered into a $289.5 million USD loan agreement with MRP Pacifica Class B Holdings AIV, LLC; MRP Pacifica Marketing, LLC; Hanford BESS, LLC; Malaga BESS, LLC; and Henrietta BESS, LLC —five special purpose vehicles (SPVs) wholly-owned by Middle River Power, LLC, an independent power company based in Chicago and backed by the American multinational investment firm, Avenue Capital LLC — for the 327 MW Middle River Power (MRP) Pacifica Project. The facility was divided into three tranches: a $28.9 million USD Letter of Credit tranche with a maturity period of six years and one month and a final maturity date of December 31, 2029; $119.9 million USD Equity Bridge Facility tranche with a maturity period of one year and one month and a final maturity date of December 31, 2024; and a $94.2 million USD Term Loan tranche with a maturity period of six years and one month and a final maturity date of December 31, 2029. BOC contributed to the $119.9 million USD Equity Bridge Facility tranche and the $94.2 million USD Term Loan tranche. The proceeds of the facility were used to for several purposes, including (1) to support ongoing construction expenses; (2) to allow the issue of Letters of Credit or to post cash collateral; and (3) for general working capital purposes related to four co-located energy storage projects in California, totaling 327 MW. BOC contributed $22.6 million USD to the $119.9 million USD Equity Bridge Facility tranche. The following lenders also contributed the following amounts: Associated Bank contributed $22.6 million USD; First Citizens Bank provided $22.6 million USD; MUFG Bank provided $22.6 million USD; and Société Générale (SocGen) contributed $29.59 million USD. Record ID#106368 captures BOC's contribution. BOC contributed $23.2 million USD to the $94.2 million USD Term Loan tranche. The following lenders also contributed the following amounts: Associated Bank provided $11.4 million USD; First Citizens Bank provided $20.5 million USD; MUFG Bank provided $8.7 million USD; and SocGen contributed $30.4 million USD. Record ID#106369 captures BOC's contribution. Then, on July 2, 2024, the $289.5 million USD facility was upsized with an additional $48.7 million USD Credit Facility. The upsized facility carried a maturity period of five years and was priced at SOFR plus a margin of 225 basis points (bps) (2.25%). BOC contributed $9.74 million USD to the new facility. The following lenders also each contributed $9.74 million USD: Associated Bank, First Citizens Bank, MUFG Bank, and SocGen. Record ID#106370 captures BOC's contribution. The 327 MW Middle River Power (MRP) Pacifica Portfolio, or MRP California Battery Energy Storage System (BESS) Portfolio, is a spate of BESS assets co-located energy storage facilities at MRP gas power plants in California. The three battery storage projects on gas-fired peaking plants will enable hybrid plants, with the goal of reducing overall greenhouse emissions. Some of the MRP sites with BESS asset upgrades include: 97 MW Hanford Hybrid Clean Energy Center in Hanford, 96 MW Malaga Hybrid Clean Energy Center, and 96 MW Henrietta Hybrid Clean Energy Center (also Henrietta Peaker Project) in Lemoor. The projects will provide addition power to Fresno and Kings Counties in California. Ameresco, Inc. provided installation support.
Staff comments
1. Latham & Watkins acted as legal adviser to the sponsor on the deal. 2. MRC operates the following facilities in California: two natural gas-fired, combined-cycle plants—830 MW High Desert in San Bernardino County and 330 MW Tracy in Tracy—as well as two natural gas-fired, simple-cycle peaking facilities—97 MW Hanford in Hanford and 96 MW Henrietta in Lemoore—and the 418 MW CalPeak portfolio, representing a series of six natural gas-fired, simple cycle peaking facilities located throughout the state, including 96 MW Hybrid Clean Energy Center.