Primergy Secures PPA With Microsoft For 408 MW Solar Project In Texas

Primergy Secures PPA With Microsoft For 408 MW Solar Project In Texas

US-based solar and storage project developer Primergy announced that it has closed commitments for $588 million in debt financing for the 408 MWac Ash Creek Solar project in Hill County, Texas. The company also signed a long-term power purchase agreement with Microsoft for the full capacity of the plant.

“The successful completion of this financing and a long-term PPA from Microsoft for Ash Creek is a testament to Primergy’s proven ability to creatively develop, finance, build, and operate large-scale renewables projects,” said Ty Daul, CEO of Primergy. He further added “Ash Creek aligns with Primergy’s mission to invest in well-located projects that offer regional diversity to our portfolio and serve the needs of leading corporate customers. Our team is extremely grateful for our continued partnership with prominent clean energy project financiers to make this a reality and are proud to work with Microsoft on meeting its sustainability commitments.”

According to a media statement by Primergy, the Ash Creek Solar project debt financing includes a construction loan, tax credit transfer bridge loan, and related letters of credit. The facilities are led by MUFG Bank, Ltd. and SMBC as lead structuring arrangers and seven coordinating lead arrangers (“CLAs”) including BNP Paribas, Commerzbank AG, Crédit Agricole Corporate and Investment Bank, ING Capital, KeyBanc Capital Markets, Norddeutsche Landesbank Girozentrale, New York Branch, and Rabobank. Latham & Watkins LLP acted as Primergy’s legal counsel, while Skadden Arps Slate Meagher & Flom served as the lender’s counsel.

On securing the contract with Microsoft, “We are thrilled to continue our relationship with Primergy and support its growing solar and storage portfolio,” said Louise Pesce, Managing Director, Project Finance Americas at MUFG. “We are committed to creating a sustainable future by financing solar projects that have a positive community impact, like Ash Creek Solar.”

“The financial close of Ash Creek Solar aligns with SMBC’s commitment to advance the development of clean energy infrastructure,” said Paul Jun, Head of Power & New Energies Project Finance at SMBC. “We continue to partner with organizations like Primergy that are accelerating the global energy transition,” she further added about the PPA with Microsoft.

Primergy has engaged SOLV Energy, a leading utility-scale solar contractor, as the engineering, procurement, and construction partner. Construction has started and is expected to create approximately 350 local full-time construction jobs. Once operational, the safety and reliability of Ash Creek Solar will be managed by six full-time and permanent positions on-site, claimed the company.