The financing package for the Tierra Seca and Seven Flags energy storage projects has been secured with a total value of $152 million. This substantial investment will enable Spearmint to complete the construction of both projects and deliver their operational capabilities.
- US$59 million in construction to term loan facilities (CTL) provided by Manulife
- US$95 million in Tax Equity Bridge Loan (TEBL) facilities, provided by East West Bank and Investec Inc
- US$98 million in tax equity commitments from Sugar Creek Capital
These financing arrangements will be supported by a strong team of financial advisors and lenders, including EWB and Investec, who will serve as Coordinating Lead Arrangers, Joint Bookrunners, and Green Loan Structuring Agents for the TEBL facilities. Investec will also act as Administrative Agent for the TEBL facilities, while EWB will serve as Collateral Agent and Depository Bank for the TEBL and CTL facilities.
“…We are thrilled to secure this financing for the Tierra Seca and Seven Flags, which demonstrates the confidence world-class investors have in Spearmint’s ability to develop and efficiently operate grid-scale energy storage infrastructure. As rapidly increasing power demand continues to put pressure on grid stability, we are pleased to accelerate the development of these two projects to facilitate increased energy availability in ERCOT.”
— Andrew Waranch, Founder, President, and CEO of Spearmint
The Tierra Seca and Seven Flags energy storage projects will be built by M.A. Mortenson Company, a leading power engineering, procurement, and construction contractor with extensive experience in building battery energy storage systems (BESS). Both projects will utilize the state-of-the-art PowerTitan 2.0 energy storage platform provided by Sungrow Power Supply Co. Ltd, a leading global inverter and BESS solutions supplier. Table 1: Financing Details
| Lender | Total Investment | Role |
| :———— | :————— | :————- |
| Manulife | $59 million | CTL |
| East West Bank | $95 million | TEBL |
| Investec | $95 million | TEBL, Agent |
| Sugar Creek | $98 million | Equity Commitment |
Upon completion of construction and commencement of their operations, the Tierra Seca and Seven Flags energy storage projects will add over 200 MW/400 MWh of storage capacity to the ERCOT grid. This will help deliver reliable, affordable, and efficient power to homes and businesses throughout Texas. Cory Magnuson, CFO of Spearmint, added: “Manulife, East West Bank, Investec, and Sugar Creek Capital are globally recognised investors with strong expertise in energy and infrastructure. We are proud that they have elected to partner with Spearmint in our mission of providing safe, stable, and affordable power to the grid.”
- Total investment: $152 million
- Financing package comprised of CTL, TEBL, and tax equity commitments
- Two energy storage projects, Tierra Seca and Seven Flags, will be built by M.A. Mortenson Company
- State-of-the-art PowerTitan 2.0 energy storage platform to be used in both projects
- Projects to add 200 MW/400 MWh of storage capacity to the ERCOT grid
The financing package has been secured with the support of a strong team of financial advisors and lenders, including EWB and Investec. The Tierra Seca and Seven Flags energy storage projects will be an important milestone in Spearmint’s mission to provide safe, stable, and affordable power to the grid, and will contribute to the reliable energy supply in Texas. As rapidly increasing power demand continues to put pressure on grid stability, these projects will accelerate the development of energy storage infrastructure, helping to deliver reliable, affordable, and efficient power to homes and businesses.
