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Doral Renewables Secures Debt Financing and Executes Construction Contracts for the Remaining Phases of the Mammoth Solar Project
Globe Newswire 3-Sep-2024 7:00 AM
PHILADELPHIA, Sept. 03, 2024 (GLOBE NEWSWIRE) -- Doral Renewables LLC ("Doral Renewables") announced the successful close of a project debt financing package to support initial construction of the remaining phases of its Mammoth Solar complex located in Northern Indiana. KeyBanc Capital Markets acted as Coordinating Lead Arranger and Administrative Agent, and HSBC and Santander Corporate & Investment Banking acted as Joint Lead Arrangers for the $285 million financing, which consists of a $200 million construction loan facility and $85 million of additional support via letters of credit. Simultaneously with this financing, the projects entered into Engineering, Procurement and Construction (EPC) Agreements with Bechtel, an American construction company that is one of the largest in the world.
The remaining phases of Mammoth include three 300 MW (900 MW overall) ground-mounted single-axis photovoltaic (PV) systems – Mammoth South, Mammoth Central I, and Mammoth Central II – located in Pulaski County, Indiana. This announcement follows the completion of construction on the first phase of the Mammoth complex, the 400 MW Mammoth North project located in Starke County, Indiana, which occurred in July. Each of the Mammoth Solar project sections have secured Power Purchase Agreements (PPA) with leading investor-owned utilities via which the project will generate long-term energy and renewable energy certificate revenues.
Mammoth Solar is also at the center of Doral Renewables' agrivoltaics initiatives, which include integrating on-site livestock grazing and crop cultivation, allowing local farmers to continue their farming operations, maximizing land use, and generating additional value. In recognition of these efforts, the Mammoth Solar project was named the Dual Use Plan of the Year at the inaugural North American Agrivoltaics Awards in July. At the same time, the State of Indiana presented a proclamation declaring July 9th as Agrivoltaics Day forever in Indiana.
"We are proud to have delivered this crucial and novel structure in which this financing serves as a bridge to the eventual permanent construction financing," said Evan Speece, Chief Financial Officer at Doral Renewables. "And notably, we have done so with a fantastic team of lenders at KeyBank, Santander and HSBC who will continue to serve as important financial partners as we continue to execute on our mission."
"We are pleased to continue our relationship with the experienced management team at Doral Renewables. Mammoth Solar will be the largest standalone solar portfolio in the U.S., and we are thrilled to serve as coordinating lead arranger for this credit facility to help accelerate the assets' construction," said Nadav Hazan, Vice President, KeyBanc Capital Markets, Utilities, Power & Renewable Energy Group.
"The Mammoth Solar Project not only marks a significant milestone in Doral's journey but also represents a major opportunity for Pulaski County by creating hundreds of jobs during construction, contributing to the economic and environmental well-being of the region," said Amit Nadkarni, Doral Renewables' SVP, Project and Asset Management. "We are thrilled to partner with Bechtel, a company with over a century of experience, for the execution of the rest of the Mammoth Solar facility. Bechtel brings an unparalleled level of expertise to the table, and their culture of delivering high-quality EPC services makes them the ideal partner for this ambitious project. Together, we are committed to upholding the highest standards of quality, safety, and environmental stewardship."
Kelley Brown, Bechtel's Operations Manager of Renewables & Clean Power said: "We're delighted that Doral has chosen Bechtel to deliver the remaining three phases of Mammoth Solar, one of the biggest solar projects in the US. One of the keys to the success of building a project of this scale is working closely with the local building trades to provide the necessary skilled labor. We look forward to collaborating with unions and being good neighbors and active community members to maximize the positive social impact - including through local job creation - as we construct these facilities to generate a further 1.1 gigawatts of clean renewable power."
McDermott Will & Emery served as legal counsel to Doral and Norton Rose Fulbright LLP served as legal counsel to the lenders in connection with the financing transaction.
About Doral Renewables LLC
Doral Renewables is a Philadelphia-based renewable energy developer, owner, and operator of renewable energy assets, operating all over the United States. It has a solar and storage development portfolio of over 13 GW, including 400 MW on the verge of operation and over 900 MW under construction, and is operating in 18 states and across 10 electricity markets. Doral Renewables has over $2.5 billion in long-term wholesale power purchase agreements with U.S. customers. The company has a global management and leadership that includes the Doral Group, Migdal Group, Clean Air Generation, with further financial backing from Apollo Global Management (NYSE:APO).
About KeyBanc Capital Markets
KeyBanc Capital Markets is a leading corporate and investment bank providing capital markets and advisory solutions to dynamic companies capitalizing on opportunities in changing industries. Our deep industry expertise, broad capabilities and unique ideas are seamlessly delivered to companies across the Consumer & Retail, Diversified Industries, Healthcare, Industrial, Oil & Gas, Real Estate, Utilities, Power & Renewables, and Technology verticals. With over 800 professionals across a national platform, KeyBanc Capital Markets has more than $50 billion of capital committed to clients and an award-winning Equity Research team that provides coverage on nearly 500 publicly traded companies. Securities products and services are offered by KeyBanc Capital Markets Inc., member FINRA/SIPC, and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services, are offered by KeyBank N.A.
About HSBC
HSBC Bank USA, National Association (HSBC Bank USA, N.A.) serves customers through Wealth and Personal Banking, Commercial Banking, Private Banking, Global Banking, and Markets and Securities Services. Deposit products are offered by HSBC Bank USA, N.A., Member FDIC. It operates Wealth Centers in: California; Washington, D.C.; Florida; New Jersey; New York; Virginia; and Washington. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., a wholly-owned subsidiary of HSBC North America Holdings Inc.
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$2,975bn at 30 June 2024, HSBC is one of the world's largest banking and financial services organizations.
About Santander Corporate & Investment Banking
Santander Corporate & Investment Banking (Santander CIB) is Santander's global division that supports corporate and institutional clients, offering tailored services and value-added wholesale products suited to their complexity and sophistication, as well as to responsible banking standards that contribute to the progress of society.
About Bechtel
Bechtel is a trusted engineering, construction and project management partner to industry and government. Differentiated by the quality of our people and our relentless drive to deliver the most successful outcomes, we align our capabilities to our customers' objectives to create a lasting positive impact. Since 1898, we have helped customers complete more than 25,000 projects in 160 countries on all seven continents that have created jobs, grown economies, improved the resiliency of the world's infrastructure, increased access to energy, resources, and vital services, and made the world a safer, cleaner place.
Bechtel serves the Energy; Infrastructure; Manufacturing & Technology; Mining & Metals; and Nuclear, Security & Environmental markets. Our services span from initial planning and investment, through start-up and operations. www.bechtel.com
