Matrix Renewables closes Tax Credit Transfer Agreement and Construction to Term Loan Financing for 260MWdc solar project in Ada County, Idaho

PR Newswire

MIAMI, Feb. 22, 2024 /PRNewswire/ -- Matrix Renewables, the TPG Rise-backed global renewable energy platform, today announced that it has closed on the construction to term loan financing of $283 million and also executed a production tax credit (PTC) transfer agreement for its project Pleasant Valley Solar located in Idaho.

The debt transaction led by MUFG as Coordinated Lead Arranger includes a construction loan, term loan and LC support. HSBC, SMBC, National Bank of Canada, Commonwealth Bank of Australia and Mizuho acted as Mandated Lead Arrangers. The tax credit transfer agreement was executed with a property/casualty insurance company as the tax credit buyer and Stonehenge Capital as the tax credit servicer. Matrix has elected PTC monetization for the project and received a full 10-year PTC purchase commitment from the tax credit buyer.

"We are incredibly pleased to report our financing and construction progress on our Pleasant Valley Solar project. Construction started in Q3 2023, and will start delivering power starting in 2025 to Idaho Power and Meta under a 20-year PPA" said Cindy Tindell, Managing Director and Head of U.S. for Matrix Renewables. "Pleasant Valley Solar will provide clean power to the equivalent of 14,500 homes, deliver grid resiliency and avoid 211,000 metric tons of CO²equivalent yearly. These environmental attributes are in addition to the economic benefit for the Boise metropolitan region in Idaho. We thank MUFG for their ongoing support and look forward to a long relationship with Idaho Power and Meta."

"MUFG is excited to be a part of this transaction and we're looking forward to continuing supporting Matrix Renewables on this project and their future developments," said Fred Zelaya, Managing Director on the MUFG Americas Project Finance team.

In the U.S., Matrix owns over 6.7 GW of projects in operation and in various stages of development across four different regions (CAISO, MISO, ERCOT and WECC) and continues to expand its pipeline and team to capitalize on the large demand for renewable energy in the U.S. Globally, Matrix's portfolio surpasses 14 GW of solar power, battery storage and green hydrogen projects.

Matrix was advised by CRC-IB, Norton Rose Fulbright, ICF Resources, and Riverside Risk Advisors. Latham & Watkins acted as lenders' counsel and Allen & Overy acted as counsel to Stonehenge Capital and the tax credit buyer.