“Closing project financing and a long-term purchase agreement for the PTCs on a large project in west Texas is complex,” said Vesper Energy’s Chief Financial Officer Robert Scheuermann.
The Hornet Solar project will generate 600 MWac, enough to power 160,000 homes annually. This project will be one of the largest single-phase solar projects in the United States.
Vesper secured a $590 million debt financing package for the Hornet Solar project, consisting of a construction-to-term loan and letter of credit facility. The bank group includes MUFG Bank Ltd., Nord/LB and Santander Corporate & Investment Banking as coordinating lead arrangers, BayernLB as joint lead arranger, and Associated Bank as lender.
“MUFG is pleased to jointly lead the debt financing for Vesper Energy’s largest solar project to date,” said Matt Curtin, Director at MUFG. “This partnership reflects our confidence in the Vesper team and its ability to successfully deliver ambitious, clean energy solutions.”
“Financing critically important energy transition projects such as Hornet Solar reflects Nord/LB’s commitment to supporting Vesper Energy in the growing and maturing renewable energy sector,” said Nicolai Dillow, Managing Director / Head of Originations at Nord/LB.
The debt financing leverages PTC transfer funding made possible by provisions under the Inflation Reduction Act. Through the purchase commitment arranged by Advantage Capital, more than $500 million of PTCs will be monetized and leveraged by the loan facility. Vesper Energy was advised by CCA Capital on the sourcing and structuring of the PTC transfer commitment.
“This transaction demonstrates Advantage Capital’s ability to structure creative financing solutions for a dynamic and growing renewable energy market. We’re thrilled to have achieved this outcome with Vesper Energy and look forward to expanding our partnership across many projects to come” said Michael Sponseller, Vice President at Advantage Capital.
With a nameplate capacity of 600MWac and 745MWdc, the Hornet Solar project will utilize bifacial photovoltaic modules on a single axis tracking system. Hornet Solar interconnects to Oncor Electric’s transmission system in ERCOT.
Blattner Energy is constructing the Hornet Solar project. The power generated by the project is contracted to four off-take partners through individual Power Purchase Agreements.