NEW YORK, Jan. 7, 2013 /PRNewswire/ -- True Green Capital Management LLC and CIT Group Inc. (NYSE: CIT) today announced the December closing of $35 million of financing and commencement of construction for a 12.3 megawatt solar photovoltaic energy installation at Joint Military Base McGuire-Dix-Lakehurst in Burlington County, New Jersey. The installation is a portfolio company of True Green Capital Management, a New York-based private investment firm specializing in asset-based investments in distributed renewable power. In addition to equity contributed by True Green Capital Management, CIT Energy served as Sole Lead Arranger in a $24 million senior secured credit facility provided by CIT Bank, the U.S. commercial bank subsidiary of CIT Group Inc. Terms of the transaction were not disclosed.
As use of proceeds for the equity and debt financing, True Green Capital Management and CIT partnered with the U.S. Air Force, solar installer Trinity Solar and host United Communities LLC, the privatized military housing community at Joint Base McGuire-Dix-Lakehurst, to create one of the largest military community-based solar installations in the country.
The U.S. Air Force granted its support and consent for the solar power plant to provide electricity at a reduced rate for a period of 20 years to the privatized military family housing community at Joint Base McGuire-Dix-Lakehurst, the U.S. military's only tri-service installation, consisting of McGuire Air Force Base, Fort Dix and neighboring Naval Air Station Lakehurst.
With 12.3 megawatts of rooftop power generation, the solar plant will establish Joint Base McGuire-Dix-Lakehurst as one of the largest solar-powered military communities in the nation. As the largest energy consumer in the U.S., the Department of Defense itself has a goal beyond privatized military housing to obtain 25 percent of its energy requirements from independent renewable energy sources by 2025.
The project under construction currently employs over 120 engineering, electrical, installation and maintenance workers and upon completion scheduled for the second half of 2013 will generate an estimated 13.7 million kilowatt hours of renewable electric power annually. According the Environmental Protection Agency, this annual level of clean, sustainable power production offsets in excess of 1 million gallons of gasoline or approximately 22 million barrels of foreign crude oil each year.
Jeffrey T. Brown of True Green Capital Management commented, "True Green Capital Management is proud to provide independently produced clean energy to U.S. military families through our Joint Base McGuire-Dix-Lakehurst solar system. Beyond its status as one of the largest military community-based photovoltaic power plants in the U.S., this is a strategic investment for our firm that reinforces the important role solar energy will play in our domestic energy mix in the coming years. We are grateful for the collaboration among stakeholders including our lender CIT, United Communities, the U.S. Air Force and Trinity Solar that made True Green Capital Management's ability to finance this project possible."
Mike Lorusso , Managing Director and Group Head of CIT Energy, said, "This transaction highlights our ability to develop customized financing solutions for middle market clients within the alternative energy industry, a sector in which we expect to play an increasingly large role as domestic renewable energy continues to experience significant growth. We are excited to announce the close of this financing and to establish a relationship with True Green Capital Management."
"As the largest solar installer the Northeast, Trinity Solar is pleased to expand its relationship with True Green Capital Management in completing what will be our second installation of a system owned by their firm," said Tom Pollock , CEO of Trinity Solar . "Trinity is proud of what this project stands for and we look forward to completing a system that provides the military families on-base with renewable electricity produced right here at home."
Mike Haydinger of United Communities commented, "The estimated 13.7 million kilowatt hours produced each year by the full rooftop solar system will represent roughly 40 percent of the annual electricity usage of our 2,104 military family homes at Joint Base McGuire-Dix-Lakehurst. After careful evaluation of parties with which to partner for a solar solution to meet our goals of energy savings and efficiency, we are pleased to bring the project to fruition at United Communities in partnership with True Green Capital Management and installer Trinity Solar ."
About True Green Capital Management LLC
True Green Capital Management LLC is a privately owned, specialized investment firm managing capital for institutions and high net worth individuals in the United States and abroad. With offices in New York and Connecticut, the firm targets directly originated asset-based investment opportunities across the capital structure with a focus on distributed power generation infrastructure in non-traditional energy sectors. www.truegreencapital.com
About CIT Energy and CIT Bank
CIT Energy provides value-added financing products and advisory services to higher growth, entrepreneurial companies throughout the energy and power sector. Founded in 2000, CIT Bank (Member FDIC) is a wholly-owned subsidiary of CIT Group Inc. (NYSE: CIT). It is regulated by the Federal Deposit Insurance Corporation and the Utah Department of Financial Institutions. As of September 30, 2012, it had $8.6 billion of deposits and $11.6 billion of assets. BankOnCIT.com
About Trinity Solar LLC
As the largest solar provider in the Northeast, Trinity has installed over 4,500 solar power systems since 2004 equating to nearly 70 installed megawatts. Trinity has grown to approximately 400 employees through year end 2012 and is now one of the largest pure-play solar engineering, procurement and construction providers in the nation. www.trinity-solar.com
About United Communities LLC
Rated AA-/Positive by Standard & Poor's, United Communities is the private owner and manager of the military multifamily community at Joint Base McGuire-Dix-Lakehurst which houses approximately 2,100 military families. In 2006 the U.S. Air Force awarded and conveyed the 645 acre property, as well as management of the community's renovation, development, operation and management to United Communities and its affiliates under 50 year ground lease and management contracts. United Communities is wholly owned by First Montgomery Group, AMO®, a Marlton, New Jersey-based owner, operator and manager of multifamily residential communities and retail real estate holdings in New Jersey, Pennsylvania and Delaware. www.mcguiredixuc.com