Arevon Energy, a solar and energy storage project developer, announced the financial closure of $299 million debt financing commitments for the 192 MWdc Ratts 1 solar and 73 MWdc (60 MWac) Heirloom solar projects. The projects are part of the Midwest and Midcontinent Independent System Operator territory, adding 264 MWdc capacity to Pike County, Indiana.
Construction on the Ratts 1 and Heirloom solar projects began in August 2024, and both projects are expected to be in commercial operation by Q3 2025.
Crédit Agricole, Commerzbank, Bank of America, and Lloyds Bank were each coordinating lead arrangers and collectively provided a $119 million construction-to-term loan, a $159 million tax equity and tax credit bridge loan, and a $21 million letter of credit facility.
Crédit Agricole also acted as the Administrative Agent, Green Loan Coordinator, and Interest Rate Swap Coordinator. BNY Mellon was the Collateral and Depositary Agent. Latham & Watkins served as Sponsor Counsel, while Milbank served as the Lender Counsel.
“While the IRA’s tax credit transfer mechanism offers a broad range of debt and equity options, pioneering new financing structures present unique challenges,” Denise Tait, Chief Investment Officer at Arevon said. “This financing package is cutting-edge and complex, as well as a major milestone, as it is Arevon’s first deal structured with an uncommitted tax equity and tax credit transfer bridge takeout. We are grateful to our financing partners for working with us to close this advanced transaction.”
In April 2024, Arevon Energy secured $352 million in financing for the construction and development of the 228 MW Posey Solar Project in Posey County, Indiana. The project is expected to be operational in Q1 2025.
Mercom’s 1H and Q2 2024 Solar Funding and M&A report announced that large-scale project funding in 1H 2024 came to $19.9 billion in 117 deals compared to $14.9 billion in 113 deals in 1H 2023. This report underscores the growing investment and M&A activity in the solar energy sector.
