Arevon Energy, a solar and energy storage project developer, announced the closing of $351 million financing to build the 251 MWdc Gibson Solar Project, located in Gibson County, Indiana. Construction on the Gibson solar project began last month. The project is expected to create more than 250 construction jobs and will disburse more than $83 million in local government payments throughout the life of the project.
The funding consisted of a construction loan from CoBank, Societe Generale, and PNC Bank, along with a letter of credit facility provided by CoBank. CoBank acted as coordinating lead arranger, administrative agent for the lenders, collateral agent for the secured parties, documentation agent, and letter of credit Issuing Bank. Societe Generale also acted as coordinating lead arranger. BNY served as a depositary agent.
Amis, Patel & Brewer represented Arevon as sponsor counsel. Milbank served as lender counsel, and Husch Blackwell served as local counsel for the transaction.
Signal Energy is the project engineering, procurement, and construction contractor.
Additionally, under a commercial contract between Arevon and Northern Indiana Public Service Company, the latter will own and operate the project following the conclusion of construction.
“Financial close and the start of construction are two major milestones for the Gibson Solar Project that I am pleased to celebrate alongside the Arevon team,” Denise Tait, Chief Investment Officer at Arevon said. “Gibson Solar represents our sixth completed financial package in the last year, amounting to $3 billion in capital. These closings would not be possible without our partners, and we are grateful for their continued trust and collaboration in executing deals that enable a clean energy future.”
This month, the company also 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.
According to Mercom’s 1H and Q2 2024 Solar Funding and M&A report, 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.
