EXECUTIVE SUMMARY
With new financing in place, Avantus has closed a $1.05 billion corporate credit facility to accelerate utility-scale solar and battery energy storage projects across California and the Desert Southwest. The facility supports development of a 24 GW pipeline, including 13 GW of solar and 44 GWh of battery storage.
News Synopsis
Avantus, an American company that develops, owns, and operates utility-scale solar energy and battery energy storage projects, has obtained a credit facility amounting to $1.05 billion to finance the expansion of its renewable energy portfolio within California and the Desert Southwest region. The financing amounts to double the company’s earlier $522 million corporate credit facility arranged in July 2024, meant to assist with the company’s IPP strategy.
This increase in the credit facility will create the financial ability for the company to finance its pipeline projects that amount to 24 GW of total energy production capacity. The projects will include 13 GW of solar energy production and 44 GWh of battery energy storage, signifying the company’s continuous efforts to develop hybrid large-scale renewable energy projects.
The financing was provided by a consortium of existing and new lenders. Existing participants, including SMBC, ING Capital LLC, HSBC, KKR and Truist Securities, extended or increased their commitments. New lenders joining the facility include BHI (Bank Hapoalim), CIBC, KeyBanc Capital Markets Inc., Mizuho, National Bank of Canada Capital Markets, and Natixis Corporate & Investment Banking.
Commenting on the transaction, Cliff Graham, Chief Executive Officer of Avantus, said, "This financing is a clear signal of our strategic partners' confidence in our ability to execute and grow as an independent power producer." He added that the facility provides the financial scale needed to deliver reliable electricity through the company's renewable energy portfolio.
Omar Karar, Executive Vice President of Capital Markets and M&A at Avantus, stated that the expanded facility offers greater flexibility to move solar and storage assets from development into construction and operations. According to him, the strong lender participation reflects continued institutional confidence in the company's platform and long-term growth strategy.
The financing follows several recent milestones for Avantus. The company recently achieved commercial operation of the 200 MW Aratina 1 solar project with 500 MWh of battery storage in Kern County, California. It also secured more than $525 million in construction financing for the adjacent Aratina 2 project and signed a 20-year power purchase agreement for the Rexford 2 project in Tulare County, California, which will include 200 MW of solar generation and 800 MWh of battery storage.
Avantus expects to have 788 MW of renewable energy capacity in commercial operation and 800 MW under construction by the end of 2026. KKR Capital Markets and EIG Capital Markets acted as placement agents while Kirkland & Ellis advised Avantus and Milbank represented the lending group.