NEW YORK, June 1, 2020 /PRNewswire/ -- CIT Group Inc. (NYSE: CIT) today announced that its Power and Energy business served as sole coordinating lead arranger for a $225 million letter of credit facility on behalf of 8minute Solar Energy (8minute), a leading developer of renewable energy projects nationwide.
8minute intends to use the credit facility to arrange purchase power agreements and interconnection agreements associated with its development pipeline of solar and storage projects representing 18 gigawatts of power in California, Texas and the southwestern United States.
"8minute is pleased to continue to receive increasing investment and financing to help us deliver on our rapidly expanding pipeline," said Dr. Tom Buttgenbach, President and CEO of 8minute. "CIT has again demonstrated its agility and industry expertise to arrange this financing and advance the deployment of our large-scale solar and energy storage projects."
8minute is the largest privately-held solar power developer in the U.S., with nearly 2 gigawatts of solar projects in operation and an additional 18 gigawatts of solar and 24 gigawatt-hours of energy storage under development, consisting of more than 50 utility-scale projects in various stages. The new letter of credit facility is 10 times larger than a previous version that it replaces, reflecting the strength and growth of 8minute's pipeline in recent years.
"We are delighted to expand our growing relationship with 8minute by arranging this first-of-a-kind financing facility," said Mike Lorusso, managing director and group head for CIT's Power and Energy business. "With this transaction, CIT has now led financings on behalf of 8minute Solar totaling nearly $570 million for solar projects capable of generating 267 megawatts of renewable power. We look forward to continuing to support their financing needs."
In leading this letter of credit facility, CIT extends its track record as one of the top renewable energy lenders nationwide, according to market research firm Inframation, an Acuris company.
CIT led a group of four other banks in arranging the letter of credit facility. In addition to leveraging its financing and structuring expertise, CIT is also providing a comprehensive package of capital markets services and treasury management solutions.
Power and Energy, part of CIT's Commercial Finance 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.
CIT is a leading national bank focused on empowering businesses and personal savers with the financial agility to navigate their goals. CIT Group Inc. (NYSE: CIT) is a financial holding company with over a century of experience and operates a principal bank subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender). The company's commercial banking segment includes commercial financing, community association banking, middle market banking, equipment and vendor financing, factoring, railcar financing, treasury and payments services, and capital markets and asset management. CIT's consumer banking segment includes a national direct bank and regional branch network. Discover more at cit.com/about.
About 8minute Solar Energy
8minute Solar Energy (8minute) is the largest privately-held developer of solar PV and storage projects in the United States. Founded in 2009 by President and CEO Dr. Tom Buttgenbach, 8minute has over 18 GW of solar and storage projects under development, with 2 GW in operation in 2020. The company holds many industry records, including the development of the largest solar plant in the nation, the first operational solar plant in the US to beat fossil fuel prices, as well as the Eland Solar & Storage Center, the lowest cost PPA for a new generation of fully dispatchable solar-plus-storage baseload power plants. 8minute is a solar industry leader in technology, engineering, and development innovations—with a team that has a track record of delivering above-market profitability and strong financial returns on utility-scale solar and storage projects. For more information, please visit www.8minute.com.
SOURCE CIT Group Inc.