Scottsdale solar power provider Arevon closes $351 million financing for latest project

Arevon Energy Inc., a renewable energy developer and operator based in Arizona, has closed a $351 million financing package that solidifies plans for the company to build out a 251 megawatt solar project in Gibson County, Indiana.

The project, which had started construction in August, will generate enough clean electricity to annually power the equivalent of more than 30,000 homes.

Earlier this year, Arevon, which is headquartered in Scottsdale, said it had closed a $1 billion financing package to proceed with a major solar project in Southern California that combines solar power generation and storage.

For Arevon, starting work on Gibson Solar adds to an already hefty investment in power infrastructure in that state, with the company arranging some $3 billion in financing and tax equity commitments for a total of six projects in Indiana.

In addition to the Gibson Solar Project, in the past year, Arevon has announced it has achieved a $299 million financing package for its Ratts 1 and Heirloom Solar Projects; a $352 million financial close for the Posey Solar Project; a $529 million financing package for its Vikings Solar-plus-Storage Project; a $350 million preferred equity, debt, and ITC transfer financing for its Condor Energy Storage Project; and a $1.1 billion tax equity commitment and debt financing including a construction-to-term loan, a tax equity bridge loan, and letter of credit facilities for its Eland 2 Solar-plus-Storage Project.

The financial package for Gibson Solar included a construction loan with CoBank, Societe General, and PNC Bank along with a letter of credit facility provided by CoBank, the coordinating lead arranger for the financial package. PNC Capital Markets LLC and Societe Generale also served as coordinating lead arrangers. BNY served as depositary agent. Amis, Patel & Brewer represented Arevon as sponsor counsel; Milbank LLP served as lender counsel; and Husch Blackwell served as local counsel. Signal Energy is the project’s engineering and construction contractor.

Northern Indiana Public Service Company LLC (NIPSCO), the second largest electric distribution company in Indiana, executed a commercial contract for Gibson Solar with Arevon. Under the terms of the agreement, NIPSCO will own and operate the project following the conclusion of construction.

“As we celebrate Arevon’s fourth utility-scale project that is under construction and financed in Indiana, we extend our gratitude to our valued partners – CoBank, Societe Generale, and PNC Bank. Additionally, our collaboration with NIPSCO will help the utility take the next step in their electric generation transition to provide sustainable, cost-effective, and reliable energy to their customers,” Kevin Smith, Arevon’s CEO, said in a statement. “Long term, the Gibson Solar Project will strengthen the local economy and increase energy security.”

Besides its headquarters in the Valley, Arevon also has an office in New York City, but majority of its approximately 240 employees work out of Scottsdale.

Multiple solar companies are involved in major developments across the Southwest, including in Arizona. In May, a syndicate of U.S. and Canadian banks provided financing for the large-scale 300 megawatt Box Canyon solar power project south of Phoenix in Pinal County.