Arevon Secures $351 Million Financing Package for its Gibson Solar Project in Indiana

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Sep 17, 2024, 09:00 ET

Arevon closes its sixth transaction in the last year totaling $3 billion in project financings

SCOTTSDALE, Ariz. and PRINCETON, Ind., Sept. 17, 2024 /PRNewswire/ -- Arevon Energy, Inc., a leading renewable energy developer, owner, and operator, has closed financing on a $351 million package to build the 251 megawatt (MWdc) Gibson Solar Project, located in Gibson County, Indiana. The project, which has initiated construction, will create more than 250 construction jobs and will disburse more than $83 million in local government payments throughout the life of the project. Once operational, Gibson Solar will generate enough clean electricity to annually power the equivalent of more than 30,000 homes.

The financial close included a construction loan with CoBank, Societe Generale, and PNC Bank along with a letter of credit (LC) facility provided by CoBank. CoBank served as Coordinating Lead Arranger, Administrative Agent for the Lenders, Collateral Agent for the Secured Parties, Documentation Agent, and LC Issuing Bank. PNC Capital Markets LLC and Societe Generale also served as Coordinating Lead Arrangers. BNY served as Depositary Agent. Amis, Patel & Brewer represented Arevon as Sponsor Counsel; Milbank LLP served as Lender Counsel; and Husch Blackwell served as Local Counsel. Signal Energy is the project's engineering, procurement, and construction (EPC) contractor.

"Financial close and the start of construction are two major milestones for the Gibson Solar Project that I am pleased to celebrate alongside the Arevon team," Denise Tait, Chief Investment Officer at Arevon said. "Gibson Solar represents our sixth completed financial package in the last year, amounting to $3 billion in capital. These closings would not be possible without our partners, and we are grateful for their continued trust and collaboration in executing deals that enable a clean energy future."

"Providing capital for renewable energy developments is one of the ways we realize our mission to ensure the sustainability and vitality of our nation's rural agricultural communities. CoBank is pleased to partner with Arevon in support of the Gibson Solar Project to encourage economic development and employment opportunities for local communities," Justin Merkowitz, Managing Director and Head of Project Finance at CoBank said.

In addition to the Gibson Solar Project, in the last year, Arevon has announced it has achieved a $299 million financing package for its Ratts 1 and Heirloom Solar Projects; a $352 million financial close for the Posey Solar Project; a $529 million financing package for its Vikings Solar-plus-Storage Project; a $350 million preferred equity, debt, and ITC transfer financing for its Condor Energy Storage Project; and a $1.1 billion tax equity commitment and debt financing including a construction-to-term loan, a tax equity bridge loan, and letter of credit facilities for its Eland 2 Solar-plus-Storage Project.

"As we celebrate Arevon's fourth utility-scale project that is under construction and financed in Indiana, we extend our gratitude to our valued partners – CoBank, Societe Generale, and PNC Bank. Additionally, our collaboration with NIPSCO will help the utility take the next step in their electric generation transition to provide sustainable, cost-effective, and reliable energy to their customers," Kevin Smith, Chief Executive Officer at Arevon said. "Long term, the Gibson Solar Project will strengthen the local economy and increase energy security."

Northern Indiana Public Service Company LLC (NIPSCO), the second largest electric distribution company in Indiana, and Arevon executed a commercial contract, which, under the terms of the agreement, NIPSCO will own and operate the project following the conclusion of construction.

About Arevon
Arevon Energy, Inc. is a leading renewable energy company, supplying clean, reliable, and cost-effective energy to utilities and businesses to power the energy transition across the United States. Headquartered in Scottsdale, Arizona, and with a regional office in New York City, Arevon's more than 250 mission-driven employees use innovative approaches and leading-edge technology to develop, build, finance, own, and operate renewable energy projects. Arevon owns and operates more than 4,000 megawatts (MW) of utility-scale solar, energy storage, and solar + storage hybrid projects as well as distributed generation assets in 17 U.S. states. The company is currently constructing more than 2,000 MW of new solar and storage capacity and has a robust development portfolio of more than 6 gigawatts. For more information, visit www.arevonenergy.com.

SOURCE Arevon