Longroad Completes Financing of 331 MW Solar Project in Texas

Longroad Energy has announced the financial close and commencement of construction of the Prospero 2 Solar Project, a 331 MW dc project located in Texas.

Longroad Energy Holdings, a US-based renewable energy developer, owner and operator, has announced the financial close and commencement of construction of the Prospero 2 Solar Project, a 331 MW dc project located in Andrews County, Texas. The firm will continue to own the USD 320 million project, which is expected to come on-line in the second quarter of 2021. It will also manage the construction.

Prospero 2 is adjacent to Longroad’s Prospero 1 project, which recently declared commercial operation. Prospero 1 is co-owned by Longroad and AIP.

“We are pleased to bring Prospero 2 to financial close and to commence construction,” said Peter Keel, Chief Financial Officer of Longroad. “It’s always tough finalising deals, but even more so in today’s challenging market.  We want to commend our lead lending and tax equity partners, US Bank and CIT Group, for being especially constructive and supportive throughout the process.”

The Prospero 2 closing marks over 2 GW of total wind and solar projects developed, financed, and built in Texas by the Longroad team.

The project will cover more than 2,500 acres in Andrews County, Texas, and will deliver more than USD 9 million in property taxes, including almost USD 6 million to the Andrews ISD. The Project will also create several hundred construction jobs as well as jobs for the operating facility.  All told, the project expects to pay more than USD 10 million in wages over the life of the project.

The project has two 15-year power purchase agreements (PPAs), one with DaVita Inc. and another with a subsidiary of Zimmer Biomet Holdings, Inc.

“DaVita is committed to using 100 percent renewable energy and our PPA with Longroad’s Prospero 2 project will help make this happen,” said Peter Berkowitz, DaVita’s Vice President of Real Estate and Center Development. “Our previous PPA with Longroad helped us reach the halfway mark on our goal, and we expect that Prospero 2’s completion will carry us across the finish line.”

DaVita anticipates that its share of the projects under the two virtual PPAs with Longroad will generate as much renewable energy as the amount of electricity used in its North American operations.

CIT led the construction and term lending group as the Coordinating Lead Arranger.  Zions, Rabobank, HSBC, Commerzbank, Siemens Financial Services, and National Australia Bank also participated in the lending group.