A private equity firm and an investor owned by the government of Singapore are trying to buy five solar farms in North Carolina in a deal that would also hand them control of Cypress Creek Renewables LLC, an owner and developer of solar and energy storage projects, according to a filing with the Federal Energy Regulatory Commission.
Cypress Creek Renewables Holdings LLC asked FERC Sept. 3 to allow subsidiaries of HPS Investment Partners LLC and Temasek Holdings (Pte.) Ltd. to acquire five Cypress Creek companies that own solar projects with a combined capacity of approximately 282 MW.
After the transaction, HPS and Temasek would indirectly hold all of the interest in Cypress Creek Holdings LLC, the controlling entity behind Cypress Creek Renewables.
Terms of the proposed deal were not disclosed. Cypress Creek Renewables Holdings asked FERC to issue an expedited ruling by Oct. 30.
Cypress Creek Renewables said in an Aug. 31 press release that HPS and Temasek agreed to swap "a substantial portion" of their investment in the company for a 100% equity stake. Cypress Creek Renewables is headquartered in California and owns a portfolio of solar projects totaling 1,600 MW, according to its website.
"This recapitalization of HPS and Temasek's original investment in the company significantly reduces our corporate debt and right-sizes our balance sheet, creating a sustainable capital structure that will enable our success for years to come," said Sarah Slusser, CEO of Cypress Creek.
As part of the transaction outlined in the FERC application, HPS and Temasek would take an indirect controlling interest in Cypress Creek companies that own Innovative Solar 46 Project, Innovative Solar 43 Project, the Shoe Creek Solar farm, Bladen Solar Farm and the Bullock Solar farm. All of the projects sell power to Duke Energy Progress LLC, a subsidiary of Duke Energy Corp.
New York-headquartered HPS, which holds indirect investments in rooftop solar projects throughout the U.S., had $61 billion in assets under management as of April, according to the takeover application filed with FERC.
Temasek, which is owned by the Singapore Minister of Finance, has an investment portfolio that was valued at approximately $231 billion at the end of March 2019.
The proposed transaction is being reviewed by the Committee on Foreign Investment in the United States and by the European Commission, according to Cypress Creek Renewables Holdings.