Primergy Solar, a developer, owner, and operator focused on distributed and utility-scale solar PV and battery storage projects, announced the closure of its $588 million commitments in debt financing for the 408 MW Ash Creek solar project in Hill County, Texas.
The company has also signed a long-term power purchase agreement (PPA) with Microsoft for the total capacity of the plant.
The debt financing includes a construction loan, tax credit transfer bridge loan, and related letters of credit. MUFG Bank and SMBC lead the facilities as lead structuring arrangers and seven coordinating lead arrangers, including BNP Paribas, Commerzbank AG, Crédit Agricole Corporate and Investment Bank, ING Capital, KeyBanc Capital Markets, Norddeutsche Landesbank Girozentrale, New York Branch, and Rabobank.
Latham & Watkins LLP acted as Primergy’s legal counsel, while Skadden Arps Slate Meagher & Flom served as the lender’s counsel.
Once completed, the project is expected to generate enough carbon-free energy to power the equivalent of approximately 90,000 homes per year.
Orion Power Generation, a joint venture between Orion Renewable Energy Group and Eolian, originally developed the Ash Creek solar project. Primergy acquired the project in 2021.
“The successful completion of this financing and a long-term PPA from Microsoft for Ash Creek is a testament to Primergy’s proven ability to creatively develop, finance, build, and operate large-scale renewables projects,” said Ty Daul, CEO of Primergy. “Ash Creek aligns with Primergy’s mission to invest in well-located projects that offer regional diversity to our portfolio and serve the needs of leading corporate customers. Our team is extremely grateful for our continued partnership with prominent clean energy project financiers to make this a reality and are proud to work with Microsoft on meeting its sustainability commitments.”
According to Mercom’s Q4 and Annual Global Solar Funding and M&A report, large-scale project funding deals announced in 2023 came to $44.5 billion in 229 deals, of which 196 were disclosed.
X-ELIO, a solar project developer, recently announced the closing of €89 million (~$96.75 million) financing deal with Societe Generale as sole Bookrunner, Mandated Lead Arranger and Hedge Provider.
