KDC Solar Closes Portfolio Financing With U.S. Bank

BEDMINSTER, N.J., Dec. 15, 2011 /PRNewswire/ -- KDC Solar LLC ("KDC Solar"), a developer of large scale behind the meter commercial solar projects headquartered in Bedminster, New Jersey has closed its most recent financing for a portfolio of projects in New Jersey through a wholly owned subsidiary. The financing, provided by a subsidiary of U.S. Bancorp (NYSE: USB), provides long-term renewable energy tax equity financing for multiple distributed generation, net-metered solar projects, the first two of which total approximately 7 MW. 

The first installation in the portfolio - a 3.25 MW rooftop mounted solar system at a warehouse in Cranbury, New Jersey – was completed on November 14th.  The second installation – a 3.5 MW rooftop mounted solar system at a warehouse in South Brunswick, New Jersey is expected to be completed in late December or early 2012.

"We are extremely pleased to partner with U.S. Bank on this unique transaction," said Hal Kamine, KDC Solar's CEO.  "This addition to our capital structure will allow us to continue to pursue and accelerate our commitment to 'behind-the-meter' solar electric systems for businesses, governments and institutions in New Jersey, which in turn creates or preserves long-term jobs for New Jersey."

Reznick Group, collectively with Reznick Capital Markets (RCM), acted as advisor to KDC Solar.  Reznick Group and RCM conducted the financial modeling for all parties to the transaction, provided tax and structuring advice, advised on Section 1603 eligibility and provided appraisals for each of the solar systems.

"As U.S. Bank continues to drive clean-energy growth through investment, we value new partners like KDC Solar, whose experience in developing commercial scale projects ensures a sound relationship," said Adam Altenhofen, Assistant Vice President of Renewable Energy Investments for U.S. Bancorp.  "We look forward to additional opportunities with KDC Solar and appreciate Reznick Group's critical role in the partnership."

About KDC Solar LLC
KDC Solar is the successor company to Kamine Development Corp ("KDC"), established in 1985 and which developed, constructed, owned, and operated co-generation natural gas fired power plants.  KDC Solar is supported by an allocation of $225 million in equity from Diamond Castle Holdings, a New York-based private equity fund with more than $1.8 billion of committed capital under management. KDC Solar has more than 50 MWs of "behind the meter" solar projects at businesses and institutions in various stages of construction throughout New Jersey and expects to have more 12 MWs in operation by January 2012. KDC Solar supplies commercial, institutions and governments with significantly lower long-term electric costs through solar power. For more information, visit www.kdcsolar.com.

KDC Solar LLC
Alan M. Epstein
Phone: (908) 212-3621
Email: [email protected]

About U.S. Bancorp
With $321 billion in assets as of June 30, 2011, U.S. Bancorp is the parent company of U.S. Bank, the fifth-largest commercial bank in the United States. The company operates 3,086 banking offices in 25 states and 5,068 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. 

U.S. Bancorp is a recognized leader in financing a variety of renewable energy projects, building on its experience in other tax credit equity investments, including new markets, historic, and affordable housing tax credit investments. U.S Bancorp has committed more than $550 million of renewable energy tax equity to finance over $1 billion of renewable energy projects in the United States primarily in the solar market, and in select opportunities in the wind energy market. Visit U.S. Bancorp on the web at www.usbank.com.

U.S. Bancorp
Nicole Garrison-Sprenger
Phone: 612-303-0731
Email: [email protected]

About Reznick Group
Reznick Group is a top 20 national public accounting firm providing accounting, tax and business advisory services to clients nationwide.  The firm's industry experience includes affordable housing, financial services, renewable energy, healthcare, nonprofits, professional services, commercial real estate and technology.  For more information, visit www.reznickgroup.com.

SOURCE KDC Solar LLC