Cox, Castle & Nicholson LLP acted as real‑estate and permitting counsel for IPX Power, LLC on a $4.95 billion financing package that will fund the construction and operation of the Darden solar and storage project in Fresno County, California. The deal combines construction debt, tax‑equity commitments and credit facilities, marking IPX Power’s first project‑level financing since its formation and signaling a major capital deployment in the U.S. renewable‑energy pipeline.
Cox Castle Advises on $4.95 B Financing of IPX Power’s Darden Project
Cox Castle’s real‑estate team, led by partners Dan Engler and Adriana Vesci, and its permitting team, led by partners Annie Mudge and Robbie Hull, provided counsel on site‑control acquisition and on securing California Energy Commission AB 205 opt‑in certification. The financing package includes a $403 million letter of credit, a $911 million tax‑equity bridge loan, a $1.81 billion tax‑credit transfer bridge loan and a $1.83 billion construction loan that will convert to a term loan at project completion. In total, the structure also contains $929 million of tax‑equity commitments and purchase agreements for $2.13 billion of investment tax credits.
Scale and Timeline of the Darden Solar‑Storage Project
Located on privately owned retired agricultural land in California’s Central Valley, Darden is designed to generate up to 1.15 GWac (1.6 GWp) of solar power and to incorporate 4.6 GWh of battery storage. The project is slated to reach commercial operation in 2028, making it one of the largest and most complex renewable‑energy developments in the United States.
Financing Structure and Market Participants
The debt facility was underwritten by a consortium of leading banks. MUFG Bank, Ltd., Banco Santander, Crédit Agricole CIB, Deutsche Bank and Societe Generale acted as Initial Coordinating Lead Arrangers and Joint Bookrunners. Additional Coordinating Lead Arrangers included BNP Paribas, CIBC Capital Markets, CoBank, ACB, HSBC Bank USA, Intesa Sanpaolo, J.P. Morgan, National Bank of Canada, NORD/LB, Royal Bank of Canada, Standard Chartered, Truist Securities, Wells Fargo Securities and Westpac Banking Corporation. MUFG served as Administrative Agent, Santander as Green Loan Arranger, CIBC as Global Hedge Coordinator, Wilmington Trust as Collateral Agent and J.P. Morgan as Depositary Agent.
J.P. Morgan and Morgan Stanley provided the tax‑equity commitment, with J.P. Morgan agreeing to purchase any unallocated investment tax credits—a commitment expected to be replaced by third‑party tax‑credit purchase agreements during construction.
A broad advisory team supported the transaction, including Kirkland & Ellis (commercial and tax counsel to IPX Power), Orrick Herrington & Sutcliffe (debt‑financing counsel), Milbank (tax counsel to equity investors) and Paul Hastings (counsel to arrangers, agents and lenders). Independent consultants such as Luminate (engineer) and Aurora Energy Research (market and transmission) were also engaged.
Key Takeaways
- Cox, Castle & Nicholson served as local real‑estate and permitting counsel for IPX Power’s $4.95 billion Darden financing.
- The financing package combines a $1.83 billion construction loan, $403 million letter of credit, $911 million tax‑equity bridge loan, $1.81 billion tax‑credit bridge loan, $929 million tax‑equity commitments and $2.13 billion of investment tax‑credit purchase agreements.
- Darden is expected to deliver up to 1.15 GWac of solar power, 4.6 GWh of storage, and reach commercial operation in 2028.
EnergyInsyte's Take
The financing underscores the depth of capital available for large‑scale solar‑plus‑storage projects in California, while the layered debt and tax‑equity structure reflects the complexity of funding such assets. Executives should monitor the conversion of the construction loan to term financing and the eventual replacement of J.P. Morgan’s tax‑credit purchase commitment, as these steps will influence cash‑flow timing and risk allocation for the Darden project.
Source: Businesswire
