Primergy Solar – a leading developer, owner, and operator of utility-scale solar and storage projects – announced today it closed commitments for $588 million in debt financing for a 408 MWac Ash Creek Solar project in Hill County, Texas. And Primergy also signed a long-term power purchase agreement with Microsoft for the full capacity of the plant.
The Ash Creek Solar site is strategically based near several existing fossil fuel plants and high energy demand. After it is completed, the project is expected to generate enough carbon-free energy to power approximately 90,000 homes per year.
Primergy engaged with SOLV Energy, a leading utility-scale solar contractor, as the engineering, procurement, and construction partner. Construction started and is expected to create about 350 local full-time construction jobs. After it becomes operational, six full-time and permanent positions on-site will manage Ash Creek Solar’s safety and reliability.
Primergy and the company’s partners worked closely with local leaders, school districts, and over 20 landowners to make sure Ash Creek Solar brings tangible benefits to the community beyond the construction phase. And 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.
Ash Creek Solar was originally created by Orion Power Generation, a joint venture between Orion Renewable Energy Group LLC and Eolian. And Primergy acquired the project in 2021.
The Ash Creek Solar project debt financing included a construction loan, tax credit transfer bridge loan, and related letters of credit. These facilities are being led by MUFG Bank and SMBC as lead structuring arrangers and seven coordinating lead arrangers (CLAs), which included BNP Paribas, Commerzbank AG, Crédit Agricole Corporate and Investment Bank, ING Capital, KeyBanc Capital Markets, Norddeutsche Landesbank Girozentrale, New York Branch, and Rabobank. And Latham & Watkins LLP acted as Primergy’s legal counsel and Skadden Arps Slate Meagher & Flom served as the lender’s counsel.
KEY QUOTES:
“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.”
– Louise Pesce, Managing Director, Project Finance Americas at MUFG
“The financial close of Ash Creek Solar aligns with SMBC’s commitment to advance the development of clean energy infrastructure. We continue to partner with organizations like Primergy that are accelerating the global energy transition.”
– Paul Jun, Head of Power & New Energies Project Finance at SMBC
“Large-scale solar projects have a ripple effect that strengthens communities. 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.”
– George Hershman, CEO of SOLV Energy
“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. 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.”
– Ty Daul, CEO of Primergy
