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.