Heelstone finances solar duo
North Carolina-based solar and storage developer Heelstone Renewable Energy, backed by Qualitas Energy, has closed financing and started construction on the 104MW Alligator Creek solar project in Wheeler County, Georgia, and the 102MW Murch solar project in Van Buren County, Michigan.
Paragon Energy Capital advised Heelstone on the financing of Alligator Creek and Stonehenge Capital provided syndication and asset management services to an undisclosed production tax credit buyer. Zions Bank was sole coordinating lead arranger under a construction-to-term loan facility. For Murch, CG/CRC-IB advised on the financing. Stonehenge Capital provided the tax equity investment and ING and NordLB were coordinating lead arrangers and lenders, providing a tax equity bridge facility and a construction-to-term loan. The total amount of the Murch financing was US$152.6m, according to LPC data.
Both projects are backed by long-term power purchase agreements with an undisclosed hyperscale data centre developer. Heelstone executed EPC contracts with Pure Power Contractors for Alligator Creek and Greensol Renewables for Murch. Commercial operation is expected by the end of 2026.
At the start of the year Heelstone closed on a US$200m senior secured corporate credit facility from Deutsche Bank to fund growth initiatives, including letters of credit for interconnection deposits, power purchase agreements, project financing and deposits on equipment. The facility also established a revolving credit sublimit to fund company-level working capital, advanced equipment purchases and general corporate purposes. It was expected to accelerate Heelstone's transition to an independent power producer and strengthen its ability to deliver an expanding portfolio of projects across the US.
Heelstone has more than 5GW of solar, wind and battery storage across the US and is targeting more than 1GW of tax credit-qualifying projects by the end of 2028.
