More than half a billion dollars in financing will propel a North Texas solar project forward.
The Ash Creek Solar project, located on thousands of acres in Hill County south of Dallas, recently closed commitments of $588 million in debt financing that includes a construction loan, tax credits and other letters of credit.
Technology giant Microsoft has agreed to buy the solar plant’s entire capacity under a long-term deal. Its capacity can power about 90,000 homes for a year.
Primergy Solar LLC is behind the project in the communities of Penelope and Abbott. Ash Creek Solar was originally developed as a joint venture between Orion Renewable Energy Group LLC and Eolian. It was acquired by Primergy in 2021.
Primergy develops, owns and operates solar photovoltaic and battery storage projects across the U.S. It is a portfolio company of investment manager Quinbrook Infrastructure Partners.
The project, with SOLV Energy serving as the contractor, is expected to create about 350 jobs during construction. Once operational, it will be managed by six full-time workers.
Primergy estimates Ash Creek Solar will provide about $100 million in tax payments to Hill County in its operating life, estimated at more than 30 years.
The company said on its website that Ash Creek Solar landowners will earn $1 million to $2 million cumulatively in annual lease payments. It has worked with more than 20 landowners.
Latham & Watkins worked with Primergy on the debt financing, while Skadden Arps Slate Meagher & Flom advised the lender.
Serving as lead finance structuring arrangers are MUFG Bank Ltd. and SMBC, with the additional coordinating arrangers of BNP Paribas, Commerzbank AG, Crédit Agricole Corporate and Investment Bank, ING Capital, KeyBanc Capital Markets, Norddeutsche Landesbank Girozentrale, New York Branch, and Rabobank.
