The Ash Creek Solar site is strategically sited near several existing fossil fuel plants and high energy demand. Once completed, the project is expected to generate enough carbon-free energy to power the equivalent of approximately 90,000 homes per year.
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, Ltd. and SMBC as lead structuring arrangers and seven coordinating lead arrangers (CLAs) 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 LLP acted as Primergy’s legal counsel, while Skadden Arps Slate Meagher & Flom served as lender’s counsel.
“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” said 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.”
Primergy has engaged SOLV Energy, a leading utility-scale solar contractor, as the engineering, procurement, and construction partner. Construction has started and is expected to create approximately 350 local full-time construction jobs. Once operational, the safety and reliability of Ash Creek Solar will be managed by six full-time and permanent positions on-site.
The company and its partners worked closely with local leaders, school districts, and over 20 landowners to ensure Ash Creek Solar brings tangible benefits to the community beyond the construction phase. 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.
“We are thrilled to continue our relationship with Primergy and support its growing solar and storage portfolio” added Louise Pesce, Managing Director, Project Finance 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.”
Ash Creek Solar was originally developed by Orion Power Generation, LLC, a joint venture between Orion Renewable Energy Group LLC and Eolian. Primergy acquired the project in 2021.
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