Primergy Solar has closed commitments for $588 million in debt financing for the 408 MW Ash Creek Solar project in Hill County, Texas, while also signing a long-term PPA with Microsoft for the plant’s full capacity.
Primergy has engaged SOLV Energy as the project’s EPC partner. Construction has started and once operational, the project is expected to be managed by six permanent on-site positions.
“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,” says 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.”
Project debt financing includes a construction loan, tax credit transfer bridge loan and related letters of credit. Facilities are led by MUFG Bank 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 acted as Primergy’s legal counsel, while Skadden Arps Slate Meagher & Flom served as lender’s counsel.
Ash Creek Solar was originally developed by Orion Power Generation, a joint venture between Orion Renewable Energy Group and Eolian. Primergy acquired the project in 2021.