Arevon Energy has closed $299 million in debt financing commitments for its Ratts 1 Solar and Heirloom Solar Projects in Pike County, Indiana. The projects, located in the Midwest and within the Midcontinent Independent System Operator (MISO) territory, will add 264 megawatts (MWdc) of renewable energy capacity.
This financing represents a key milestone for Arevon, leveraging the Inflation Reduction Act’s (IRA) tax credit transfer provisions. This innovative approach marks Arevon’s first transaction structured with uncommitted tax equity and tax credit transfers. Unlike the traditional construction-to-term loan facilities, this structure allows greater flexibility, deferring tax credit transfers closer to commercial operation.
The financing package includes 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. Credit Agricole, Commerzbank, Bank of America, and Lloyds Bank acted as Coordinating Lead Arrangers. Credit Agricole also served as the Administrative Agent, Green Loan Coordinator, and Interest Rate Swap Coordinator, while BNY Mellon acted as the Collateral and Depositary Agent.
Denise Tait, Chief Investment Officer at Arevon, highlighted the significance of this deal, noting that while the IRA’s tax credit transfer mechanism provides new opportunities, the structure also presented unique challenges.
Construction on the Ratts 1 and Heirloom Solar Projects is already underway, with commercial operation expected by Q3 2025. Ratts 1 Solar will supply energy under a long-term agreement with the Indiana Municipal Power Agency, while Meta will purchase power from Heirloom Solar.
Arevon has also been involved in other large-scale renewable energy financings, including $352 million for the Posey Solar Project, $529 million for the Vikings Solar-plus-Storage Project, and $1.1 billion for the Eland 2 Solar-plus-Storage Project.