US renewable energy firm Arevon Energy Inc. announced that it has secured a financing package of USD 351 million (EUR 315 million) to build the 251-MW DC Gibson solar project in Gibson County, Indiana, where construction has recently begun.
Gibson Solar Project to Create Jobs and Power 30,000 Homes
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Construction on the project has begun, creating over 250 construction jobs and generating more than $83 million in payments to local governments over its lifespan. Once completed, the Gibson Solar facility will produce enough clean energy to power more than 30,000 homes annually.
Financial Close Secured with Key Banking and Legal Partners
The financial close involved a construction loan from CoBank, Societe Generale and PNC Bank, along with a letter of credit (LC) facility provided by CoBank. CoBank acted as the Coordinating Lead Arranger, Administrative Agent for the lenders, Collateral Agent for the secured parties, Documentation Agent, and LC Issuing Bank.
PNC Capital Markets LLC and Societe Generale also took on roles as Coordinating Lead Arrangers. BNY served as the Depositary Agent. Amis, Patel & Brewer represented Arevon as Sponsor Counsel, Milbank LLP acted as Lender Counsel and Husch Blackwell served as Local Counsel. Signal Energy is responsible for the project's engineering, procurement and construction (EPC).
"Financial close and the start of construction are two major milestones for the Gibson Solar Project that I am pleased to celebrate alongside the Arevon team. Gibson Solar represents our sixth completed financial package in the last year, amounting to $3 billion in capital. These closings would not be possible without our partners, and we are grateful for their continued trust and collaboration in executing deals that enable a clean energy future." said Denise Tait, Chief Investment Officer at Arevon.
"Providing capital for renewable energy developments is one of the ways we realize our mission to ensure the sustainability and vitality of our nation's rural agricultural communities. CoBank is pleased to partner with Arevon in support of the Gibson Solar Project to encourage economic development and employment opportunities for local communities," said Justin Merkowitz, Managing Director and Head of Project Finance at CoBank.
Over the past year, in addition to the Gibson Solar Project, Arevon has announced several major financial achievements. These include a $299 million financing package for the Ratts 1 and Heirloom Solar Projects, a $352 million financial close for the Posey Solar Project, a $529 million financing package for the Vikings Solar-plus-Storage Project, $350 million in preferred equity, debt and ITC transfer financing for the Condor Energy Storage Project and a $1.1 billion tax equity commitment and debt financing for the Eland 2 Solar-plus-Storage Project which includes a construction-to-term loan, a tax equity bridge loan and letter of credit facilities.
NIPSCO to Operate Project Under Arevon Deal
Northern Indiana Public Service Company LLC (NIPSCO), Indiana's second-largest electric distribution company, and Arevon have signed a commercial contract under which NIPSCO will own and operate the project once construction is complete.
"As we celebrate Arevon's fourth utility-scale project that is under construction and financed in Indiana, we extend our gratitude to our valued partners – CoBank, Societe Generale, and PNC Bank. Additionally, our collaboration with NIPSCO will help the utility take the next step in its electric generation transition to provide sustainable, cost-effective, and reliable energy to its customers. Long term, the Gibson Solar Project will strengthen the local economy and increase energy security." said Kevin Smith, Chief Executive Officer at Arevon.
Arevon Energy, Inc. is a top renewable energy company that provides clean, reliable and cost-effective energy solutions to utilities and businesses across the United States. Arevon employs over 250 dedicated professionals who use innovative methods and cutting-edge technology to develop, build, finance, own and operate renewable energy projects.
The company manages more than 4,000 megawatts (MW) of utility-scale solar, energy storage and solar + storage hybrid projects along with distributed generation assets in 17 U.S. states. Arevon is also constructing over 2,000 MW of new solar and storage capacity and boasts a strong development portfolio exceeding 6 gigawatts.