Key Takeaways
- Treaty Oak Clean Energy secured a $300 million credit facility to enhance its renewable energy projects.
- The funding will support the company’s 17.3 GW portfolio, including solar, wind, and battery storage projects.
- Key projects include a 100 MW solar site in Arkansas and upcoming developments in Louisiana, aimed at meeting rising clean energy demands.
Funding Secured for Renewable Energy Expansion
Treaty Oak Clean Energy, a U.S. independent power producer, has successfully closed a $300 million senior secured corporate credit facility. This financial support is essential for the company as it expands its renewable energy initiatives, which currently encompass 17.3 gigawatts of utility-scale solar, wind, and battery energy storage projects across key U.S. power markets.
The credit facility was orchestrated by notable financial institutions, including ING Capital LLC, Nomura Corporate Funding Americas, LLC, and Sumitomo Mitsui Banking Corporation. ING also undertook the role of Green Loan Agent, while Nomura acted as the Administrative Agent. PEI Global Partners provided exclusive financial advisory services, and legal support for Treaty Oak came from Latham & Watkins LLP, with Norton Rose Fulbright US LLP representing the lenders.
Proceeds from the credit facility will cover strategic needs such as interconnection and offtake letters of credit, procurement of major equipment, and general corporate expenses. These investments are expected to enhance Treaty Oak’s project pipeline and reinforce its standing as a leader in the U.S. clean energy domain.
CEO Chris Elrod expressed that the financing positions Treaty Oak to accelerate the development of significant renewable projects amid evolving regulations. He emphasized that lender confidence in the company’s business model and management provides a competitive edge.
Sky Fabian, a Partner at PEI Global Partners, noted that the transaction highlights the robust capabilities of the Treaty Oak platform, backed by a consortium of premier global lenders. He remarked on the facility’s role in enabling the company to commercialize the next generation of clean energy projects throughout the United States.
Treaty Oak’s development strategy relies on strong partnerships with reputable offtakers and a flexible approach to power purchase agreements. So far, 485 megawatts of projects have secured either signed or exclusive offtake arrangements, with over 1 gigawatt currently under negotiation.
In 2024, construction commenced on the 100 MW Redfield solar project in Arkansas, with plans to break ground on an additional 385 MW of solar projects in Louisiana in 2025. The newly acquired credit facility will allow Treaty Oak to sustain its momentum in development and cater to the growing demand for clean, reliable, and cost-effective energy solutions across the nation.
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