Primergy Secures $588M in Project Financing and Power Purchase Agreement with Microsoft for 408 MW Solar Project in Texas

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Primergy Solar LLC (‘Primergy’), a leading developer, owner, and operator of utility-scale solar and storage projects, announced today that it closed commitments for $588 million in debt financing for the 408 MWac Ash Creek Solar project in Hill County, Texas.

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Monday, March 11, 2024
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Green Technology, Environment, Other Science, Other Technology, Sustainability, Urban Planning, Finance, Other Construction & Property, Professional Services, Science, Other Natural Resources, Technology, Commercial Building & Real Estate, Other Energy, Construction & Property, Utilities, Alternative Energy, Natural Resources, Energy, Slate, Microsoft, Commerzbank, Organization, MUFG Bank, Solar energy, Norddeutsche Landesbank, Partnership, SMBC, BNP Paribas, Rabobank, Investment banking, Safety, KeyBank, Latham & Watkins, MUFG, PPA, Engineering, Renewable energy
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UNITED STATES, NORTH AMERICA, CALIFORNIA, TEXAS, ASH CREEK
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PRIMERGY SOLAR, PRIMERGY SOLAR LLC
Summary
Key Points: 
  • Primergy Solar LLC (‘Primergy’), a leading developer, owner, and operator of utility-scale solar and storage projects, announced today that it closed commitments for $588 million in debt financing for the 408 MWac Ash Creek Solar project in Hill County, Texas.
  • The company also signed a long-term power purchase agreement with Microsoft for the full capacity of the plant.
  • Once completed, the project is expected to generate enough carbon-free energy to power the equivalent of approximately 90,000 homes per year.
  • The Ash Creek Solar project debt financing includes a construction loan, tax credit transfer bridge loan, and related letters of credit.


Primergy Solar LLC (‘Primergy’), a leading developer, owner, and operator of utility-scale solar and storage projects, announced today that it closed commitments for $588 million in debt financing for the 408 MWac Ash Creek Solar project in Hill County, Texas. The company also signed a long-term power purchase agreement with Microsoft for the full capacity of the plant.

“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.”

The Ash Creek Solar site is strategically sited near several existing fossil fuel plants and high energy demand. Once completed, the project is expected to generate enough carbon-free energy to power the equivalent of approximately 90,000 homes per year.

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 (“CLAs”) 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.

“We are thrilled to continue our relationship with Primergy and support its growing solar and storage portfolio,” said Louise Pesce, Managing Director, Project Finance Americas at MUFG. “We are committed to creating a sustainable future by financing solar projects that have a positive community impact, like Ash Creek Solar.”

“The financial close of Ash Creek Solar aligns with SMBC’s commitment to advance the development of clean energy infrastructure,” said Paul Jun, Head of Power & New Energies Project Finance at SMBC. “We continue to partner with organizations like Primergy that are accelerating the global energy transition.”

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. Once operational, the safety and reliability of Ash Creek Solar will be managed by six full-time and permanent positions on-site.

Primergy and its partners worked closely with local leaders, school districts, and over 20 landowners to ensure Ash Creek Solar brings tangible benefits to the community beyond the construction phase. Over Ash Creek Solar’s operating life, it will provide an estimated $100 million in tax payments to Hill County and substantially increase the tax base of local school districts.

“Large-scale solar projects have a ripple effect that strengthens communities,” said George Hershman, CEO of SOLV Energy. “Ash Creek Solar represents a long-term investment in Hill County that will generate revenue for local schools and services. We're proud to partner with Primergy to bring the benefits of solar energy to more Texans.”

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. For more information on Primergy, please visit www.primergysolar.com.

About Primergy Solar

Primergy (https://www.primergysolar.com) is a developer, owner and operator focused on both distributed and utility-scale solar PV and battery storage projects across the US. Primergy is a portfolio company of Quinbrook Infrastructure Partners and is the primary investment platform for Quinbrook Infrastructure Partners' solar and solar plus energy storage activities in North America.

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