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Vesper Energy Upsizes Letter of Credit Facility to $200 Million, Driving Energy Transition in Critical Markets

Upsizing will support Vesper’s 16 GW solar and storage development pipeline

Vesper Energy, a leading developer, owner, and operator of utility-scale renewable energy assets, today announced it has upsized its existing letter of credit (LC) facility from $140 million to $200 million. The upsizing, which follows the recent tax equity closures and debt financing of Vesper Energy’s Nestlewood and Gaucho solar energy facilities, reinforces Vesper Energy’s continued growth and success in the renewable energy industry. 

Vesper Energy upsized its LC facility with the support of experienced lenders in the industry including Macquarie Group (“Macquarie”), which acted as Administrative Agent for the original facility, along with facility parties Helaba (Landesbank Hessen-Thüringen), and ICBC Standard Bank Plc (“ICBCS”) in January 2023. The expanded LC facility provides Vesper Energy with financial security to advance development of critical solar projects.

“We are honored to work with these leading organizations as we advance Vesper Energy’s mission to build a cleaner energy future through a better renewable energy infrastructure,” said Vesper Energy CEO Craig Carson. “This upsizing will help us bring projects to life in key markets, supporting communities and partners with clean, reliable energy.”

“Macquarie is pleased to provide a tailored capital solution to Vesper Energy, a leading developer of solar energy facilities in the US,” said Sherri Brudner, Managing Director, Structured Finance in Macquarie’s Commodities and Global Markets business. “The increased size and multi-year commitment, building upon our existing relationship with Vesper and its sponsor, Magnetar Capital, reflect the strength of the Vesper team and pipeline.”

Advancing projects in critical markets

In addition to the upsizing of its LC facility, Vesper Energy also completed tax equity and project financing for its Nestlewood and Gaucho facilities in late 2022. Both facilities are located in ‘energy communities’ making them part of an initial wave of renewable energy projects that will benefit from the additional 10% investment tax credits included in the Inflation Reduction Act (IRA). 

Vesper Energy’s Gaucho facility closed project financing and tax equity in November 2022. The tax equity component of the financing was led by U.S. Bancorp Community Development in conjunction with FJ Management Inc. as co-investor. The lender group is comprised of Rabobank and Helaba. The Gaucho facility, located in Allegheny County and Beaver County in Pennsylvania, is contracted with the University of Pittsburgh under a long-term power purchase agreement (PPA). The project, scheduled to begin commercial operations in the spring of 2023, has brought jobs to an area with an unemployment rate above the national average. 

Vesper Energy’s Nestlewood facility also closed project financing and tax equity in November 2022 with the same financial parties as the Gaucho facility. The Nestlewood facility, located in Clermont County and Brown County in Ohio, is projected to have a capacity of 80-megawatts of renewable energy, helping meet regional electricity demands in the wake of the closure of a 1.35-gigawatt coal power plant in the area. The project is scheduled to achieve commercial operations by the end of 2023. 

“Our Gaucho and Nestlewood facilities are noteworthy for their status as energy communities as defined in the Inflation Reduction Act and because they will help meet electricity demands in PJM (Pennsylvania, New Jersey, and Maryland) Energy Markets, which are known for being challenging markets for renewable energy projects,” said Carson. “Our progress in this space speaks to our innovative and collaborative approach. We look forward to working with the local communities and our investment partners to build on this exciting progress.” 

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