Vesper Energy gets $590M financing for 600 MWac Texas solar project
(Solar and Wind Grid Services and Reliability Demonstration. Credit: DOE)
Vesper Energy, a developer, owner, and operator of utility-scale renewable energy assets, has announced the closing of financing for its 600 MWac Hornet Solar project, which will cover more than six square miles in Swisher County, TX.
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.
“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. “We are proud to invest in Hornet Solar alongside top-tier lenders and investors. This closing is a testament to the value Vesper Energy generated in the asset.”
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.
The debt financing leverages Production Tax Credit (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.
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.
Vesper Energy owns and operates 100 MW of solar projects, and its pipeline includes over 55 renewable energy and energy storage projects with a generating capacity of 17 GW.
