Primergy Solar LLC closed commitments for $588 million in debt financing for the 408 megawatt alternating current Ash Creek Solar project in Hill County, Texas, the company said in a March 11 press release.

The company also signed a long-term power purchase agreement with Microsoft for the full capacity of the plant.

The Ash Creek Solar site is sited near several existing fossil fuel plants and areas of high energy demand. Once completed, the project is expected to generate enough carbon-free energy to power the equivalent of approximately 90,000 homes per year.

The Ash Creek Solar project debt financing includes a construction loan, tax credit transfer bridge loan and related letters of credit.

The facilities are led by MUFG Bank Ltd. and SMBC as lead structuring arrangers and seven coordinating lead arrangers (CLAs), including BNP Paribas, Commerzbank AG, Crédit Agricole Corporate and Investment Bank, ING Capital, KeyBanc Capital Markets, Norddeutsche Landesbank Girozentrale, New York Branch and Rabobank.

Latham & Watkins LLP acted as Primergy’s legal counsel. Skadden Arps Slate Meagher & Flom served as lender’s counsel.

“The successful completion of this financing and a long-term PPA from Microsoft for Ash Creek is a testament to Primergy’s proven ability to creatively develop, finance, build, and operate large-scale renewables projects,” said Primergy CEO Ty Daul in the press release. “Ash Creek aligns with Primergy’s mission to invest in well-located projects that offer regional diversity to our portfolio and serve the needs of leading corporate customers.”

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