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Broad Reach Power is the largest utility-scale storage platform. It currently owns a 21 GW portfolio of utility-scale battery storage across the US. Broad Reach Power announced that it had successfully closed a $160 Million project financing for 17 battery energy storage systems in Texas, and one in California.
The projects are totaling 390 MWh and include utility-scale assets that use lithium-ion technology from a variety of manufacturers. Broad Reach designs and manages its battery storage projects in order to maximize its revenue. This includes financial hedges, contracts, and merchant capacity.
The Coordinating Lead Arrangers for the financing were Deutsche Bank AG, New York Branch, and MUFG Bank Limited. MUFG acted in the capacity of Administrative Agent, while Deutsche Bank Trust Company Americas acted both as Collateral Agent and Depositary Bank.
Nitin Gupta Senior Vice President of Finance and M&A, Broad Reach Power, stated that “Deutsche Bank” and “MUFG” have been great partners in this financing. He also expressed appreciation for their support of Broad Reach’s efforts to lead the U.S. energy transition in battery storage. Broad Reach looks forward to innovating ways to finance our large portfolio of projects. This is a landmark debt financing transaction within the battery storage sector.
“Battery storage projects play an important role in ensuring a reliable and cleaner electric grid,” stated Jeremy Eisman from Deutsche Bank’s Infrastructure & Energy Financing & Structuring department. “We are pleased to have worked with Broad Reach in this important battery storage financing, and we look forward to supporting their continued growth.”
Alex Wernberg (Managing Director, MUFG’s US Power project financing team) stated that Broad Reach offers an exceptional platform for the ownership and development of BESS and renewable projects. This portfolio is important for ERCOT as it provides stability to the grid, and balances the intermittent generation of renewables. Broad Reach’s journey is fascinating, and we are happy to be a part of this financing.
Broad Reach Power was represented by Milbank LLP, while Paul Hastings LLP represented lenders.