Peregrine Energy Solutions Announces the Closing of a $53 Million Preferred Equity Commitment with Bildmore Clean Energy and $115 Million Debt Facilities with First Citizens Bank and Nomura Securities International, Inc.

Rhea-AI Summary

Peregrine Energy Solutions has secured significant financing for its utility-scale energy storage project, including a $53 million preferred equity commitment from Bildmore Clean Energy and $115 million in debt facilities from First Citizens Bank (FCNCA) and Nomura Securities International. The financing supports a 150MW battery energy storage project currently under construction, with completion targeted for Q4 2025.

Founded in April 2022, Peregrine has developed a 22 GWh storage pipeline across multiple regional markets. The company previously raised $700 million from AB CarVal and secured an LC facility from KKR for up to $250 million in assets. The latest financing structure is designed for a fully merchant storage project, demonstrating innovative funding approaches for developers in the storage market.

Positive

• Secured $168 million in total new financing ($53M equity, $115M debt)
• Large 22 GWh storage project pipeline across multiple markets
• Previous successful funding rounds totaling $950 million
• 150MW battery storage project under active construction

Negative

• Project relies on merchant model, potentially increasing revenue uncertainty
• Significant debt financing may increase financial risk

Insights

Financial Analyst

First Citizens Bank's participation as Joint Coordinating Lead Arranger and Collateral Agent for this $115 million bridge financing facility represents a strategic play in the clean energy infrastructure finance market. While the specific allocation between First Citizens and co-lead Nomura isn't disclosed, this transaction demonstrates the bank's continued commitment to building its project finance capabilities in the renewable energy sector.

For context, this $115 million facility is relatively modest compared to First Citizens' $219 billion asset base post-SVB acquisition. However, the real value lies in the relationship-building and positioning in the fast-growing energy storage market. Battery storage represents a critical infrastructure component as renewable penetration increases, with the U.S. expected to add over $160 billion in grid-scale storage by 2030.

The "merchant" nature of this project (meaning it will sell into competitive wholesale markets rather than through fixed contracts) suggests First Citizens maintains comfort with more complex risk profiles in the energy sector. Being involved early with growth-stage developers like Peregrine could lead to additional financing opportunities as their 22 GWh pipeline materializes.

While this single transaction won't materially impact First Citizens' earnings, it reflects the bank's diversification strategy beyond traditional commercial lending into specialized project finance that requires sophisticated underwriting capabilities.

BOULDER, Colo., March 17, 2025 /PRNewswire/ -- Peregrine Energy Solutions LLC ("Peregrine"), an integrated multi-technology clean energy platform with a focus on utility-scale storage, announced today it has closed a $53 million preferred equity commitment with Bildmore Clean Energy for a 150MW battery energy storage project that's currently under construction. Concurrently, Peregrine also secured a $115 million bridge financing facility to fund the remaining construction of the project. First Citizens Bank acted as Joint Coordinating Lead Arranger and Collateral Agent for the facility, and Nomura Securities International, Inc. acted as Joint Coordinating Lead Arranger and Administrative Agent. The project is targeted for completion in the fourth quarter of 2025.

Peregrine, founded by Hagen Lee in April 2022, has originated and developed a pipeline of 22 GWh of storage across SPP, MISO, ERCOT, PJM and WECC. Assets developed and managed by Peregrine benefit from an experienced team of renewable energy veterans who collectively bring over 20 GW of renewable energy and storage facilities development experience. In the past two years, the company announced a $700 million capital raise from funds managed by AB CarVal, as well as securing an LC facility from KKR that can provide financing for up to $250 million in assets.

"Peregrine is delighted to partner with Bildmore, First Citizens and Nomura, structuring an innovative financing solution for our fully merchant storage project," said Reid Strand, Peregrine's Senior Vice President of Finance. "The support from our financial partners is indicative of Peregrine's best in class assets, as well as our team's ability to deliver impactful grid solutions."   

David Haug, CEO of Bildmore, added "We are honored to have the opportunity to work with the superb group of industry veterans and financial sponsors Mr. Lee has assembled at Peregrine. Bildmore's commitment showcases how we can support a battery project that wants to defer selling tax credits, an example of the innovative funding approaches we hope will help developers grow the storage market."

About Peregrine Energy Solutions

Peregrine Energy Solutions is an integrated and multi-technology clean energy platform with a focus on utility scale energy storage that was established in 2022 through a partnership between Peregrine Energy Management and a global alternative investment manager with approximately $20 billion of assets. Peregrine Energy Solutions is a limited liability company formed in Delaware and headquartered in Boulder, Colorado. Additional information is available at www.peregrineenergysolutions.com.  

About AB CarVal

AB CarVal is an established global alternative investment manager and part of AllianceBernstein's Private Alternatives business. Since 1987, AB CarVal's team has navigated through ever-changing credit market cycles, opportunistically investing $152 billion in 5,810 transactions across 82 countries. Today, AB CarVal has approximately $20 billion in assets under management in corporate securities, loan portfolios, structured credit and hard assets. Since 2017, AB CarVal has deployed over $6 billion in clean energy investments.

About Bildmore Clean Energy

Bildmore offers minority equity investments to U.S. solar and storage projects that help them optimize the transferable tax credits available under the IRA, as an alternative to traditional tax equity.  Bildmore is backed by EnCap's Energy Transition Fund II. Since 1988, EnCap Investments has been a leading provider of growth capital to the independent sector of the U.S. energy industry. The firm has raised 25 institutional funds totaling approximately $47 billion and currently manages capital on behalf of more than 350 U.S. and international investors. For more information, please visit www.bildmore.com or www.encapinvestments.com.

About First Citizens Bank

First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Headquartered in Raleigh, N.C., First Citizens has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of branches and offices nationwide; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; innovation banking serving businesses at every stage; and a nationwide direct bank. Parent company First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $200 billion in assets and a member of the Fortune 500™. Discover more at firstcitizens.com.

About Nomura

Nomura is global financial services group with an integral network spanning approximately 30 countries and regions. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its three business divisions: Wealth Management, Investment Management, and Wholesale (Global Markets and investment Banking). Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions and considered thought leadership. For further information about Nomura, visit www.nomura.com

Media contact: Blake Taylor, btaylor@peregrineenergysolutions.com 

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SOURCE Peregrine Energy Solutions LLC

FAQ

What is the total value of Peregrine Energy Solutions' new financing package with First Citizens Bank (FCNCA) and partners?

The total financing package amounts to $168 million, comprising $53 million in preferred equity from Bildmore Clean Energy and $115 million in debt facilities from First Citizens Bank and Nomura Securities.

When will Peregrine Energy Solutions' 150MW battery storage project be completed?

The project is targeted for completion in the fourth quarter of 2025.

How large is Peregrine Energy Solutions' current storage project pipeline?

Peregrine has developed a pipeline of 22 GWh of storage across SPP, MISO, ERCOT, PJM and WECC markets.

What previous major funding has Peregrine Energy Solutions secured before the First Citizens Bank (FCNCA) deal?

Peregrine previously secured a $700 million capital raise from AB CarVal and an LC facility from KKR that can provide financing for up to $250 million in assets.