Primergy Solar closes $588m US solar debt financing

March 13, 2024

Utility-scale solar and storage developer Primergy Solar has closed $588 million in debt financing for the 408 MWac Ash Creek Solar project in Hill County, Texas.

The company has also signed a long-term power purchase agreement with Microsoft for the full capacity of the plant.

Primergy has engaged SOLV Energy, a leading utility-scale solar contractor, as the engineering, procurement, and construction partner. Construction has started and is expected to create approximately 350 local full-time construction jobs.

Ash Creek Solar was originally developed by Orion Power Generation, LLC, a joint venture between Orion Renewable Energy Group LLC and Eolian. Primergy acquired the project in 2021.

The Ash Creek Solar project debt financing includes a construction loan, tax credit transfer bridge loan, and related letters of credit. The facilities are led by MUFG Bank, Ltd. and SMBC 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 lender’s counsel.

“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.”

Louise Pesce, managing director, project finance Americas at MUFG, added: “We are thrilled to continue our relationship with Primergy and support its growing solar and storage portfolio. We are committed to creating a sustainable future by financing solar projects that have a positive community impact, like Ash Creek Solar.”