Heritage Energy Holdings, a Texas-based solar and energy storage developer, secured $28.5 million in senior secured term loan financing from Eagle Point Credit Management to support the development of a distributed generation platform across Texas.
The financing will fund the development, construction, and operation of a network of sub-10 megawatt battery storage and solar projects spanning approximately 40 sites across the state. The portfolio is designed to function as a virtual power plant, allowing the assets to participate efficiently in the Electric Reliability Council of Texas (ERCOT) market while benefiting from faster grid interconnection timelines than traditional utility-scale projects.
The distributed generation platform reflects a growing strategy in the energy sector where smaller localized projects are aggregated into a coordinated network capable of providing flexible power to the grid. By operating as a virtual power plant, the platform can optimize power delivery, manage market volatility, and improve grid reliability.
Eagle Point Credit Management structured the financing as an asset-backed investment aligned with its infrastructure credit strategy. The firm specializes in private credit opportunities across inefficient markets, including infrastructure financing, specialty finance, and strategic credit investments. The firm manages approximately $14 billion on behalf of institutional and retail investors.
Heritage Energy Holdings operates as a vertically integrated energy platform in the ERCOT market, with a portfolio of distributed solar and battery storage assets and a power purchase arrangement with Heritage Power, an independent retail electricity provider serving residential, commercial, governmental, and industrial customers in deregulated markets across Texas.
Hudson Sustainable Group served as strategic advisor and co-sponsor to Heritage on the transaction, working alongside management on the formation and capitalization of the distributed generation and energy storage platform. Baker Botts LLP and Denmon Sigler Law, P.C. acted as legal counsel for Heritage.
The transaction supports Heritage’s broader strategy to expand distributed energy infrastructure across Texas while providing reliable and cleaner electricity to communities throughout the state.
KEY QUOTES
“This transaction exemplifies Eagle Point’s ability to directly originate and deliver highly structured, asset-backed financing solutions under complex and time-sensitive circumstances. Our deep industry expertise and collateral-focused analysis enabled our team to efficiently execute this investment ahead of a critical year-end deadline for Heritage. Their distributed generation model, combined with strong collateral and downside protection, aligns well with our disciplined approach to infrastructure credit investing, and we look forward to the success of the projects.”
Brittany Pinkerton, Principal, Infrastructure Credit at Eagle Point Credit Management
“We are incredibly excited to partner with Eagle Point on this financing. Eagle Point was a unique and differentiated experience for us – they demonstrated true domain knowledge of our industry and were incredibly responsive in delivering a capital solution under the time pressure of year-end. Their commitment lays the foundation for the next phase of our growth as we advance the development of more than 40 battery and solar distributed-generation sites across Texas. Together, we’re strengthening the state’s energy infrastructure and delivering reliable, cleaner power to the communities that depend on it.”
Tim Sanchez, Chief Executive Officer of Heritage Power
