Macquarie Asset Management and Sol Systems have teamed up to support a new wave of solar energy projects in North America. Their collaboration kicks off with an $85 million debt investment aimed at developing and operating five large-scale solar projects in Illinois and Ohio.
Key Points of the Partnership
- Investment Amount: $85 million
- Location: Illinois and Ohio
- Number of Projects: Five utility-scale solar projects
- Completion Date: By the end of 2025
- Type of Investment: Six-year term loan facility
About Sol Systems
Sol Systems, founded in 2008 and backed by KKR, is a national leader in renewable energy. The company focuses on building sustainable infrastructure that not only advances environmental goals but also benefits local communities. Some of their notable partners include Microsoft, Google, FedEx, and REI, highlighting their capability to work with big corporations on achieving sustainability targets.
Financial Structure
Macquarie Asset Management provided the investment in the form of a six-year term loan facility. This loan is subordinated to senior debt and tax equity, and it is secured against Sol Systems’ ownership interest in the solar projects.
Projected Outcomes
Once completed by the end of 2025, these solar projects will generate revenue through long-term, fixed-price power purchase agreements. These agreements are made with a highly creditworthy leading software services provider, ensuring a steady income stream.
Statements from Leadership
Harlan Cherniak, Head of Infrastructure Debt in the Americas for Macquarie Asset Management, expressed his enthusiasm about the partnership, saying:
“We are excited about the beginning of our partnership with Sol Systems. The investment aligns with our strategy of providing customized capital structure solutions to top-tier financial partners and strategic infrastructure sponsors. This is also part of our ongoing commitment to accelerate the decarbonization of the US power and transmission grid.”
James Machulak, Senior Vice President of Finance and Operations at Sol Systems, also shared his thoughts:
“We are thrilled to partner with a leader in infrastructure finance such as Macquarie Asset Management and to have closed this highly creative transaction. The financing will help Sol Systems continue working towards its goal of accelerating an equitable transition to a sustainable energy future.”
Future Plans
This investment is just the first step in what is expected to be a broader collaboration between Macquarie Asset Management and Sol Systems. Both companies are committed to advancing renewable energy projects and supporting the transition to a more sustainable energy infrastructure in the United States.
