#United States #Atlanta #SolAmerica Energy #KeyBank #AB CarVal

SolAmerica Energy Funding Boost for Solar Projects in Illinois

On December 3, 2024, SolAmerica Energy, headquartered in Atlanta, Georgia, announced the successful closure of financing for a notable solar portfolio in Illinois, totaling an impressive 18 megawatts, which is composed of seven distinct projects. The financing structure includes a construction loan amounting to $50 million provided by KeyBank and a substantial $79 million sale leaseback tax equity commitment secured through Key Equipment Finance. This strategic financial maneuver aligns with the company's objective to enhance renewable energy deployment and is a significant leap towards achieving commercial operation by 2025.

KeyBanc Capital Markets, renowned for its expertise in renewable energy financing and advisory services, served as the administrative and collateral agent for this vital transaction. Meanwhile, Key Equipment Finance stepped in as the exclusive tax equity investor, marking a close collaboration with SolAmerica Energy in fostering sustainable energy solutions.

Tully Blalock, the CEO of SolAmerica Energy, expressed pride in the partnership with KeyBank, emphasizing that this financing arrangement is pivotal for the implementation of their latest projects in Illinois. Blalock remarked, “This transaction continues our team's history of developing successful projects by leveraging our strong relationships with industry-leading partners.” This sentiment reiterates SolAmerica’s commitment to collaborating with established industry players to provide diverse capital solutions and efficient project execution.

The investment is not merely a financial arrangement but a reflection of a shared commitment to renewable energy. Mark Dondero, Director at KeyBanc Capital Markets, stated, “We are pleased to underwrite and provide capital for SolAmerica Energy's portfolio of solar projects.” This highlights an ongoing relationship aimed at deploying effective renewable energy solutions, thereby reinforcing the synergy between SolAmerica and its financing partners.

Robert Davies, Head of Clean Energy at Key Equipment Finance, further elaborated on the advantages of such investments, noting that with KeyBank's financing, SolAmerica is poised to deliver energy cost savings for the residents of Illinois. Moreover, he stressed the positive environmental impacts that these solar projects would bring to the local community. This perspective accentuates the dual benefit of environmental sustainability alongside economic viability.

Alex Flamm, Managing Director with AB CarVal, also shared insights on the ongoing development of these solar assets, indicating a keen focus on meeting the growing demand for renewable energy. He acknowledged KeyBank's valuable partnership, which plays a crucial role in facilitating comprehensive solutions across the solar energy landscape.

SolAmerica Energy has been a prominent player in the solar sector since its inception in 2009, having developed over 300 megawatts of solar projects across 11 states and more than 100 counties in the Eastern United States. With an operating portfolio and developmental pipeline exceeding 1.5 gigawatts in distributed generation solar projects, the company stands as a testament to innovation and commitment towards cleaner energy solutions.

In this endeavor, the legal support was ably managed by Sheppard Mullin, representing SolAmerica as the sponsor's counsel, while Thompson Hine represented the tax equity investor and lender, underscoring the multifaceted nature of these transactions where legalities play an equally pivotal role.

As we forge ahead into an era marked by an increasing demand for sustainable energy solutions, SolAmerica Energy's proactive measures to secure financing with reputable partners will play a significant role in shaping a greener future for the communities within Illinois and beyond. With plans underway for the commercial operation of these solar projects, stakeholders are keenly optimistic about the potential impact on energy sustainability and environmental preservation.

Through these initiatives, SolAmerica Energy not only contributes to local economies but sets a benchmark for future renewable energy projects, emphasizing the critical role of partnerships and strategic investment in the green energy transition.