First Citizens Bank Serves as Lead Arranger on $211 Million Financing for North Carolina Solar Power Development

Rhea-AI Summary

First Citizens Bank (FCB) serves as sole lead arranger on $211 million financing for 200-megawatt Oak Solar power plant in Gaston, North Carolina. SunEnergy1 LLC to build the solar facility in two phases, selling 100% of power to McDonald's Corp under 17-year agreement.

Positive

• FCB demonstrates commitment to clean energy infrastructure and economic growth in North Carolina.
• SunEnergy1's expertise in developing and operating utility-scale solar facilities enhances project's viability.

Negative

• None.

NEW YORK, July 25, 2023 /PRNewswire/ -- First Citizens Bank today announced that its Energy Finance group, part of the CIT division, served as sole lead arranger on $211 million in financing for the 200-megawatt Oak Solar power plant in Gaston, North Carolina.

SunEnergy1 LLC, based in Mooresville, North Carolina, plans to build the solar power facility in two phases, with 100% of the power being sold to the McDonald's Corporation under 17-year power purchase agreement. The financing package included a term loan, letter of credit and a bridge loan.

"We are pleased to develop another major contribution to North Carolina's clean energy infrastructure, while also driving investment and economic growth," said Kenny Habul, President and CEO of SunEnergy1.

"The Oak Solar project will avoid many tons of carbon emissions and improve the sustainability and diversity of the state's power generation capabilities. We appreciated the expertise of the First Citizens Bank team in arranging this financing package as we advance toward our goals," he added.

"SunEnergy1 is well known throughout the industry for its skill and experience in developing and operating utility-scale solar facilities," said Mike Lorusso, managing director for the bank's Energy Finance group. "We were pleased to support our client with a financing package that meets their business needs."

First Citizens' Energy Finance business, part of the CIT division, 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.

About First Citizens Bank
First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in Raleigh, N.C., and now celebrating the 125th anniversary of its founding, First Citizens has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of more than 550 branches in 23 states and commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $200 billion in assets. Discover more at firstcitizens.com.

MEDIA RELATIONS:
John M. Moran
212-461-5507
john.moran2@firstcitizens.com

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SOURCE First Citizens Bank

FAQ

What is the financing amount arranged by First Citizens Bank for the Oak Solar power plant?

First Citizens Bank arranged $211 million in financing for the Oak Solar power plant.

Who is building the Oak Solar power plant and where is it located?

SunEnergy1 LLC is building the 200-megawatt Oak Solar power plant in Gaston, North Carolina.

Who is purchasing the power generated by the Oak Solar power plant?

McDonald's Corporation has a 17-year power purchase agreement to buy 100% of the power generated by the Oak Solar power plant.