Panamint Capital Secures $1.8 Billion Green Financing for Major Renewable Energy Initiative

Panamint Capital Secures $1.8 Billion Green Loan for Major Renewable Energy Project

On November 4, 2026, Panamint Capital LLC, a prominent player in energy infrastructure investment, finalized financing for the initial phase of the ambitious $1.8 billion Green Loan meant to support the development of the Big Rooter Power project. This project is notable for being the largest brownfield renewable energy initiative in North America, with a planned output capacity of 1.2 GWdc solar energy. Located in Robertson County, Texas, at the firm’s Twin Oaks Power Station and Calvert Mine, Big Rooter Power is set to significantly enhance the region's renewable energy capabilities.

Project Overview

The first phase of financing, amounting to $769 million, is earmarked for the construction of the Big Rooter West component of the project, which boasts a capacity of 491 MWdc. Meanwhile, the second phase, exceeding $1 billion in financing, will focus on the construction of Big Rooter East, which will contribute a further 658 MWdc. This dual-phase approach signifies an innovative step towards bolstering solar energy output and utilization in the state of Texas.

The financial arrangements for this venture feature several major banking institutions. Lloyds, MUFG, and SMBC have taken on key roles as Coordinating Lead Arrangers, Green Loan Coordinators, and Joint Bookrunners. Notably, MUFG also acts as the Administrative Agent for the loan agreements concerning both phases of the Big Rooter financing.

Construction Timeline and Financial Structure

Construction of the Big Rooter West segment commenced in July 2026, with expectations to achieve commercial operations by August 2028. The financing package consists of a diverse array of financial instruments, including a combination of a $240 million senior secured construction-to-term loan, a $461 million tax equity bridge loan, and a $68 million letter of credit facility.

Looking ahead, the closing of the Big Rooter East financing is anticipated in the first quarter of 2027. This phase will incorporate a $336 million construction-to-term loan, a $587 million tax equity bridge loan, and a $91 million letter of credit facility, with projected commercial operations set for August 2029.

Strategic Significance

Apolka Totth, CEO of Panamint Capital, emphasized the significance of this financing by stating, “This financing completion with Lloyds, MUFG, and SMBC is a strong endorsement of both our innovative project and Panamint’s commitment to enhancing America’s energy infrastructure.” She expressed gratitude to their financial partners for their support of this historic undertaking, underscoring the collective effort needed to tackle increasingly pressing energy demands.

Big Rooter Power holds a strategic advantage due to its location and operational framework. Situated between Dallas and Houston, the project is ingeniously aligned with reclaimed coal mine land, optimizing existing infrastructure for energy generation. The 10,000-acre Twin Oaks Complex, where the project is based, encompasses not only power generation facilities but also capabilities for surface mining, energy storage, data center operations, and high voltage transmission.

Partners in Progress

In a statement reflecting the collaborative achievement, Paul Jun, Head of Power New Energies Project Finance at SMBC, remarked on the partnership's commitment to financing exemplary clean power projects that serve essential energy demands. Similarly, Timothy Chin from Lloyds noted their infrastructure and project finance expertise's critical role in supporting significant investments in U.S. energy infrastructure.

Meanwhile, Matt Curtin from MUFG expressed pride in being allied with Panamint Capital and KKR in financing such an important solar project aimed at addressing Texas’s growing energy needs sustainably. The intricacies of closing a transaction of this magnitude demonstrate the market's confidence in both the solar facility's quality and the capabilities of Panamint Capital in structuring complex energy transactions.

Legal consultations were provided by White Case LLP and Jackson Walker LLP for Panamint Capital, while Milbank LLP represented the lenders involved in this complex financing arrangement.

Conclusion

With the completion of financing for the Big Rooter Power project, Panamint Capital sets a significant precedent in the renewable energy sector, marking a crucial advancement towards meeting the energy challenges of tomorrow while underscoring the necessity for innovative financing solutions in the field. This accomplishment not only signifies a stride towards cleaner energy but also reflects a larger commitment to achieving sustainable energy solutions in North America.