Complex transaction results in innovative financing solution
NEW YORK and SCOTTSDALE, Ariz. – Arevon Energy, Inc. has secured a pre-NTP bridge loan facility from KeyBank N.A. and Morgan Stanley for the Eland 2 solar-plus-storage power plant in Kern County, California. Eland 2 is a 310 MW solar power plant with 150 MW/600 MWh of storage. Under a long-term power purchase agreement, this project will generate 200 MW of electricity to serve the power needs of Southern California, with the additional power generation used to charge the batteries.
“Arevon continues to find innovative ways to build and finance projects. The Eland 2 debt facility is another prime example of the team’s ability to transact in an increasingly competitive space,” said Brian Callaway, Arevon’s Chief Financial Officer.
“The flexibility of this financing allows Arevon to structure earlier stage deals that create additional value for our projects during a complex time in the industry,” said Daniel Murphy, Arevon’s Director, Project Finance. “Arevon is pleased to have partnered with KeyBank N.A. and Morgan Stanley who, along with our team, were instrumental in this fiscal achievement.”
KeyBanc Capital Markets and Morgan Stanley served as Coordinating Lead Arrangers on the transaction, and KeyBanc Capital Markets served as Administrative Agent and Issuing Bank.
“We are proud to partner with Arevon, and to bring our expertise and capital to the Eland 2 solar-plus-storage facility,” said, Aaron Klein, Managing Director, Utilities Power & Renewables at KeyBanc Capital Markets. “The Eland 2 transaction represents our fourteenth transaction with Arevon and illustrates our confidence in their leadership in the renewable energy sector.”
When complete, energy from the Eland 2 facility will flow to the Southern California Public Power Authority, allowing the public power system to provide electricity to ten municipalities across the region.
In addition, financing has closed on the Eland 1 solar-plus-storage power plant, adding to Arevon’s portfolio of more than 300 MW of operating solar projects in Kern County. The Eland 1 project is currently under construction. Together, Eland 1 and Eland 2 will be Arevon’s largest operating power plant when completed, will generate enough electricity to power more than 200,000 homes annually.
Amis, Patel & Brewer, LLP represented Arevon as legal counsel; Milbank LLP served as lender counsel.
Arevon Energy, Inc. is a leading renewable energy company, supplying clean energy to utilities and corporations across North America. Headquartered in Scottsdale, Ariz., and New York City, Arevon uses innovative approaches and leading-edge technology to finance and manage projects from development through construction to long-term commercial operation. Its financial prowess and industry expertise come together to improve the structure and performance of its platform of wind, solar, and energy storage power plants. Arevon was named one of Arizona’s Top Workplaces in 2022. For more information, please visit: www.arevonenergy.com
About KeyBanc Capital Markets
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