CIT Group Inc. announced its Commercial Finance division's Energy Finance unit served as sole lead arranger and administrative agent for approximately $79 million in financing for Onyx Renewable Partners L.P. This new financing follows a $53 million financing arranged by CIT for Onyx in late 2017.
The financing will support a portfolio of more than 80 megawatts of distributed generation solar power projects to be placed into service in 2018 and 2019. Onyx is a leader in the development of commercial and industrial (C&I) and small-scale utility solar projects in North America, backed by funds managed by Blackstone Energy Partners and Blackstone Capital Partners. Terms were not disclosed.
"We are pleased to again support the financing needs of Onyx Renewable Partners as it expands its portfolio of renewable power projects," said Mike Lorusso, managing director of CIT's Energy Finance business. "These projects benefit energy consumers, the economy and the environment while also increasing CIT's investments in clean, renewable power generation."
The solar power projects to be completed with this financing are spread across six states, with approximately half the portfolio in California and Arizona and the other half in the Northeastern states of New York, New Jersey, Massachusetts and Connecticut.
"CIT's expertise and flexibility were greatly appreciated as we worked through the financing needed to support these solar projects, which add to our nation's capacity for renewable power generation," said Ja Kao, President of Onyx.
RBC Capital Markets (RBC) arranged tax equity financing with three investors for the portfolio through a tax partnership structure. This transaction represents Onyx's third partnership with RBC, with the two previous partnerships closing in Q3 2017 and Q4 2015.
Late in 2017, CIT's Energy Finance unit also was the sole lead arranger of more than $53 million in financing for Onyx Renewable Partners. That financing supported a 58-megawatt operating portfolio of distributed generation solar projects across 10 states.
Taken together, the two CIT-supported financings amounted more than $132 million and involved 138 megawatts of renewable solar power.
CIT's Energy Finance unit leverages its deep industry knowledge and expertise to offer comprehensive financing solutions for renewable and conventional power generation. The unit manages a large, diverse portfolio that includes investments in all asset classes across the energy sector.