Vesper Energy Secures USD 590 Million Financing for Hornet Solar Project
The financing, totaling USD 590 million, is a combination of a construction-to-term loan and a letter of credit facility.
February 02, 2024. By Abha Rustagi
The financing, totaling USD 590 million, is a combination of a construction-to-term loan and a letter of credit facility. The bank group leading the financing includes MUFG Bank Ltd., Nord/LB, and Santander Corporate & Investment Banking as coordinating lead arrangers, with BayernLB as a joint lead arranger, and Associated Bank as a lender.
Vesper Energy's Chief Financial Officer, Robert Scheuermann, highlighted the complexity of closing project financing for a large project in west Texas and expressed pride in investing alongside top-tier lenders and investors. This accomplishment is seen as a testament to the value Vesper Energy brings to the renewable energy sector.
The Hornet Solar project aims to deliver renewable energy to communities throughout Texas, providing grid stability and mitigating price volatility in the Electric Reliability Council of Texas (ERCOT) region. Vesper Energy sees this as another crucial step in its mission to develop, construct, and operate clean energy projects across the United States.
With a nameplate capacity of 600MWac and 745MWdc, the Hornet Solar project will employ bifacial photovoltaic modules on a single-axis tracking system. Interconnecting to Oncor Electric's transmission system in ERCOT, the project is expected to power approximately 160,000 homes annually.
The debt financing structure leverages Production Tax Credit (PTC) transfer funding facilitated by provisions under the Inflation Reduction Act. Through a purchase commitment arranged by Advantage Capital, over USD 500 million of PTCs will be monetized and utilized in conjunction with the loan facility.
Matt Curtin, Director at MUFG, expressed confidence in Vesper Energy's ability to deliver ambitious clean energy solutions, while Nicolai Dillow, Managing Director at Nord/LB, emphasized the bank's commitment to supporting Vesper Energy in the growing renewable energy sector.
Advantage Capital played a crucial role in structuring the financing, showcasing its ability to provide creative solutions in the dynamic and growing renewable energy market. Michael Sponseller, Vice President at Advantage Capital, looks forward to expanding their partnership with Vesper Energy across future projects.
The construction of the Hornet Solar project is entrusted to Blattner Energy, and the power generated is contracted to four off-take partners through individual Power Purchase Agreements. The successful financing closure reinforces Vesper Energy's financial strength, continued growth, and momentum as it spearheads the development of clean energy projects in the United States.
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