Vesper Energy, a developer, owner, and operator of utility-scale renewable energy projects, secured $590 million in debt financing for the Hornet solar project in Texas. The project will deliver renewable energy to communities throughout Texas, provide grid stability, and mitigate price volatility in ERCOT.
The Hornet Solar project is located in Swisher County, Texas, and will have a capacity of 600 MWac/ 745 MWdc. It will generate enough to power 160,000 homes annually. The company secured a debt financing package, which also consists of a construction-to-term loan and a letter of credit facility. The bank group includes MUFG Bank, Nord/LB, and Santander Corporate & Investment Banking as coordinating lead arrangers, BayernLB as joint lead arrangers, and Associated Bank as the lender.
Debt financing leverages PTC transfer funding, which is made possible by provisions under the Inflation Reduction Act. Through the purchase commitment arranged by Advantage Capital, more than $500 million of PTCs will be monetized and leveraged by the loan facility.
Vesper Energy was advised by CCA Capital on the sourcing and structuring of the PTC transfer commitment. The project will utilize bifacial photovoltaic modules on a single-axis tracking system. Blattner Energy is constructing the Hornet Solar project. The power generated by the project is contracted to four off-take partners through individual Power Purchase Agreements.
“Closing project financing and a long-term purchase agreement for the PTCs on a large project in west Texas is complex,” said Vesper Energy’s Chief Financial Officer Robert Scheuermann. “We are proud to invest in Hornet Solar alongside top-tier lenders and investors. This closing is a testament to the value Vesper Energy generated in the asset.”
According to Mercom’s Q4 and Annual 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.
Globeleq, an independent solar power producer, recently announced the completion of a $37 million senior debt restructuring for 11 MW of Aries Solar and 11 MW of Konkoonsies solar projects in the Northern Cape of South Africa.