en.Wedoany.com Report on Mar 25th, Philadelphia-based utility-scale developer Doral Renewables LLC announced the successful closing of nearly $900 million in financing for its Cold Creek solar-plus-storage project in Texas. This marks the company's largest construction financing to date, aside from the 1.3-gigawatt Mammoth solar complex in Indiana.
The Cold Creek project includes 430 megawatts (AC) of solar generation and a 340-megawatt-hour battery energy storage system. Doral Renewables issued a Notice to Proceed this month, marking the start of full-scale construction. The facility is expected to power approximately 66,000 homes.
The financing was led by MUFG as the lead arranger, with a lending syndicate that included Santander, HSBC, Ally Bank, and IDB. The debt structure comprises over $400 million in construction-to-term financing, a $35 million tax equity bridge loan, and approximately $55 million in letters of credit.
The project also monetized $360 million in Production Tax Credits (PTCs) through a 10-year tax credit transfer agreement with an investment-grade corporate buyer.
Evan Speece, CFO of Doral Renewables, stated, "Partnering with a strong lender group led by MUFG, while expanding our network with new collaborators and executing the PTC transfer transaction, provides a solid foundation for our continued growth. This project will serve as a cornerstone for our future work in the Lone Star State."
The transaction involved multiple legal and financial advisors. McDermott Will & Schulte and Norton Rose Fulbright served as legal counsel for Doral and the lenders, respectively. Marathon Capital acted as Doral's financial advisor for the PTC transfer, while White & Case and Stonehenge Capital represented the PTC buyer.
The Cold Creek facility, a significant addition to the Texas grid, aims to meet growing electricity demand with reliable, utility-scale renewable energy solutions. Doral Renewables currently manages a diverse portfolio of renewable energy assets across the United States and continues to expand its footprint in the ERCOT market.
