Argo Infrastructure Partners has closed a $435 million senior secured notes financing for Smoky Mountain Holdings, a joint venture with Brookfield that owns the Cheoah, Calderwood, Chilhowee, and Santeetlah hydroelectric dams. This marks the first US Private Placement market financing of its kind, featuring both fixed and variable amortization.
The deal follows a 2024 ten-year power purchase agreement with the Tennessee Valley Authority (TVA) to supply over 14 GWh of renewable hydroelectric energy, which will help TVA customers avoid more than 11 million tons of CO2 emissions over the next decade.
KEY QUOTES:
“We’re proud to have closed this first-of-its-kind financing structure, which reflects Smoky’s status as a best-in-class, flexible and dispatchable clean energy portfolio. As digitalization, artificial intelligence, and advanced industries redefine the future of energy demand for TVA, this transaction not only fortifies the nation’s energy grid but also powers the next wave of innovation, delivering the reliable, low-carbon energy that will shape tomorrow’s economy and the technological breakthroughs of the future.”
Brice Soucy, Argo Director at Smoky
“This innovative investment grade financing represents another step in supporting clean energy in the Tennessee Valley and the resilient, low-carbon energy that the AI economy demands. This project demonstrates our and Smoky’s commitment to innovation, powering economic growth, and U.S. leadership in the global AI ecosystem.”
Jason Zibarras, Founder and Managing Partner of Argo Infrastructure Partners
