Arevon Closes $299M Financing Package for Ratts 1, Heirloom Solar Projects

Arevon Energy has closed on $299 million in aggregate debt financing commitments for the company’s Ratts 1 Solar and Heirloom Solar Projects in Indiana. 

The projects, part of the company’s portfolio in the Midwest and Midcontinent Independent System Operator (MISO) territory, will add 264 MW of capacity to Pike County.

This is Arevon’s first deal structured with an uncommitted tax equity and tax credit transfer bridge takeout, leveraging the flexibility provided by IRA tax credit transfer provisions.

Crédit Agricole, Commerzbank, Bank of America and Lloyds Bank were each coordinating lead arrangers. Combined, the banks provided a $119 million construction-to-term loan, a $159 million tax equity and tax credit bridge loan and a $21 million letter of credit facility. 

Crédit Agricole also served as the administrative agent, green loan coordinator and interest rate swap coordinator. BNY Mellon was the collateral and depositary agent. Latham & Watkins served as sponsor counsel. Milbank served as the lender counsel.

Construction is underway on the projects, targeted to be operational by next year. Ratts 1 Solar is under a long-term PPA with Indiana Municipal Power Agency, and Meta is the offtaker for Heirloom Solar.

“The Ratts 1 and Heirloom Solar Projects fortify Arevon’s reputation as a leader in spearheading innovative financial agreements and further underscore the company’s ability to successfully close project financing and drive projects into construction,” says Kevin Smith, CEO at Arevon. 

“I am proud of our team’s ability to manage risks appropriately, forge creative financial solutions and maximize the potential of the IRA to create a more sustainable energy future.”