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Primergy signs debt financing for Texas solar farm
Ash Creek project supported by long-term PPA with Microsoft
Michael Marray 20 Mar 2024

Primergy has signed a US$588 million finance package for a 408-megawatt solar project in Texas, underpinned by a power purchase agreement with Microsoft.

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 and SMBC as lead structuring arrangers and seven coordinating lead arrangers, including BNP Paribas, Commerzbank, 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 the lenders’ counsel.

“We are thrilled to continue our relationship with Primergy and support its growing solar and storage portfolio,” says Louise Pesce, managing director and project finance for the 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,” adds Paul Jun, head of power and new energies project finance at SMBC. “We continue to partner with organizations like Primergy that are accelerating the global energy transition.”

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.

Primergy has engaged SOLV Energy, a leading utility-scale solar contractor, as its engineering, procurement, and construction partner. Construction has already started.

“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 Primergy chief executive officer Ty Daul.

“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.”

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