#United States #Renewable Energy #Oakland #Primergy #Gemini Solar

Primergy Secures Significant Refinancing for the Gemini Solar + Storage Project

Primergy has taken a bold step in the renewable energy sector by securing a $600 million refinancing package for the impressive Gemini Solar + Storage Project. This project represents a landmark achievement in the United States, as it is the largest single-phase solar and energy storage operation in the country. With a total capacity of 690 MWac in solar photovoltaic (PV) and 380 MWac in battery storage, it has been providing consistent and reliable energy since its inception in 2024.

The financing structure, established through a private placement of Senior Secured Notes alongside a $160 million letter of credit facility, showcases investor confidence in Gemini's operational stability and potential for future growth. The refinancing encompasses a 24-year, fully amortizing note, which not only delivers long-term financial stability but also effectively sidesteps future refinancing risks. This strategic financing option is pivotal in maintaining sustainable energy operations critical for supporting the American power grid.

Tim Larrison, the Chief Financial Officer at Primergy, emphasized the significance of this refinancing, noting it as a strong endorsement of both the project and Primergy's capabilities. He remarked, "This milestone refinancing is a definitive vote of confidence in Gemini, in Primergy's operational capabilities, and in the future of reliable, dispatchable solar energy supporting the American power grid."

In addition to the confidence shown by investors, the financial arrangements rest on stable cash flows derived from a 25-year power purchase agreement and a productive 10-year transfer agreement for tax credits. The structure of this refinancing also reflects one of the lowest spread rates among renewable project finance transactions over the past decade, indicating the financial trust placed in this project.

The collaborative efforts of several financial institutions were vital for this successful transaction. BofA Securities, Inc., KeyBanc Capital Markets, and MUFG Securities Americas Inc. served as the Lead Placement Agents. Additionally, BNP Paribas Securities Corp. and SMBC Nikko Securities America, Inc. provided co-agency services, alongside legal advisory from Orrick, Herrington & Sutcliffe LLP for Primergy, and Latham & Watkins LLP for the note purchasers and banks.

About Primergy

Primergy is a prominent developer, owner, and operator in the utility-scale solar and energy storage sector across the United States. Their portfolio spans major energy markets, including ERCOT, MISO, PJM, CAISO, WECC, and SERC, driven by a team of experts with extensive experience in energy project development and financing. As part of Quinbrook Infrastructure Partners, Primergy is determined to lead the charge in developing efficient and sustainable energy solutions for the future.

The Gemini project's financing is set to enhance Primergy's ability to cater to America's growing energy demands while simultaneously investing in green technology that contributes to a more sustainable future. As energy needs rise, partnerships with investors like those involved in Gemini underscore the importance of renewable energy progression towards achieving a more reliable and resilient power grid in the United States.