Spearmint Energy has closed more than $250 million in financing for the construction of two battery energy storage systems (BESS) to be connected to the Electric Reliability Council of Texas (ERCOT) grid power market.

The battery systems are called Tierra Seca and Seven Flags and each have a 100-megawatt (MW)/200 megawatt-hour (MWh) capacity. Tierra Seca is located in Del Rio, Texas, and Seven Flags is located in Laredo, Texas.

In aggregate, the financing package includes $59 million in construction-to-term loan facilities from Manulife, $95 million in tax equity bridge loan facilities from East West Bank (EWB) and Investec Inc. and $98 million in tax equity commitments from Sugar Creek Capital.

Both projects are being developed by MA Mortenson Co., an engineering, procurement and construction contractor. Both projects will install Sungrow Power Supply Co. Ltd.’s PowerTitan 2.0 energy storage platform.

When finished, Tierra Seca and Seven Flags will contribute over 200 MW/400 MWh of storage capacity to ERCOT’s grid.

EWB and Investec served as coordinating lead arrangers, joint bookrunners and green loan structuring agents for the tax equity bridge loan facilities. Investec will serve as administrative agent for the TEBL facilities. EWB will serve as collateral agent and depository bank for the tax equity bridge loan facilities and construction-to-term loan facilities.

Paul Hastings LLP served as legal counsel to Spearmint. Day Pitney LLP represented Manulife, Milbank LLP represented East West Bank and Investec and Leverage Law Group LLC represented Sugar Creek in connection to the financing.

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