Macquarie Asset Management has agreed an $85m debt investment with US developer Sol Systems to support of the construction and operation of solar projects in Illinois and Ohio.
Macquarie Asset Management provided the investment on a fully bilateral basis in the form of a six-year term loan facility.
The facility is subordinated to senior debt and tax equity and is secured against Sol Systems’ ownership interest in the underlying solar projects.
The schemes are expected to complete construction by year-end 2025 and once operational, all of the projects will generate revenues under long-term, fixed-price power purchase agreements with a highly creditworthy, leading software services provider.
The investment in the five utility-scale projects marks the first tranche of a planned broader collaboration between the companies.
Sol Systems recently announced partnerships with Microsoft, Google, FedEx, REI and other large corporations to help them achieve their sustainability goals and benefit surrounding communities.
“We are excited about the beginning of our partnership with Sol Systems,” said head of infrastructure debt in the Americas for Macquarie Asset Management Harlan Cherniak.
“The investment aligns with our strategy of providing customized capital structure solutions to top-tier financial partners, strategic infrastructure sponsors, and their portfolio companies, as well as our ongoing commitment to accelerate the decarbonization of the US power and transmission grid.”
Senior vice president of finance and operations at Sol Systems James Machulak added: “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.”
Since 2008, Sol Systems has financed or developed solar projects, collectively worth over $2bn in value.