May 31, 2023   SOURCE: BusinessWire

Heelstone Renewable Energy Closes on $357 Million Project Financing for Five Utility Scale Projects Totaling Approximately 345 MWDC

Heelstone Renewable Energy, LLC (“Heelstone”) announced today the closing of the project financing to fund the construction of three portfolios composed of five (5) utility scale solar projects.

All five projects – Lyons Solar, Blackwater Solar, Bird Dog Solar, Hobnail Solar and Wolfskin Solar – are currently under construction and expected to be operational either in late 2023 or early 2024. Four of the projects are located in Georgia and represent projects Heelstone has fully self-developed.

“The Georgia projects are a culmination of years of hard work and strategic moves by Heelstone to finance a variable rate PPA in a regulated power market,” said Justin Gravatt, CEO of Heelstone. “Our background in finance enabled us to identify the opportunity and work closely with our capital partners to a create a solution capable of securing tax equity and project debt. Heelstone has a long-standing relationship with Fifth Third and was proud to work with them and J.P. Morgan on these projects. Our team has put a lot of effort into these projects, and it’s really gratifying to see that effort pay off through a successful financial close.”

Fifth Third Bank, National Association (“Fifth Third”) and JPMorgan Chase Bank, National Association (“JPM”) served as co-lead arrangers on the approximately $357 million in debt financing with City National Bank, Comerica Bank, First Horizon Bank, and United Community Bank, acting as co-documentation agents. The debt facility will support both the construction of the projects, as well as operations.

"Fifth Third Bank is dedicated to reaching our stated sustainability goals to improve the environment today and for future generations to come," said Curtis Baker, Managing Director Fifth Third Bank Debt Capital Markets. "We also emphasize providing enhanced value and serving as a trusted advisor to our clients. Leading the Heelstone financing package is an example of our ability to execute on our goals, combining a long standing relationship with Heelstone Renewable Energy, with the expertise of the renewable energy industry coverage effort at Fifth Third Bank."

“J.P. Morgan is working to provide capital that we believe accelerates the development of solar infrastructure at scale,” said John Beebe, Executive Director, J.P. Morgan Green Economy Banking. “Our work with Heelstone is actively helping to create jobs, decarbonize our communities and grow our local economies.”

Heelstone announced in February 2023 that it closed a $175 million corporate facility with BlackRock Alternatives (“BlackRock”). “With BlackRock’s corporate facility, we were able to finalize the development of the projects to obtain the project financing,” said Justin Gravatt, CEO. “BlackRock’s corporate facility will continue to be the bridge that enables us to develop our over 15 GW of pipeline. BlackRock continues to be a valuable financing partner and understands our vision and the value creation of investing in renewables.”

“We are proud to partner with Heelstone and deliver a custom fit financing solution with the objective of developing clean energy capacity and bringing jobs to local customers and communities,” Sarosh Nentin, a high yield infrastructure debt portfolio manager at BlackRock, said. “We greatly value the partnership with Heelstone and believe the company is well positioned to achieve its objectives."

About Heelstone

Heelstone is a leading utility-scale solar developer with expertise in development, construction, and operation. It has extensive knowledge of project finance and a proven track record in bringing utility-scale solar projects to fruition. In June 2019, Heelstone received a controlling investment from an account managed by affiliates of Ares Management as a part of the goal to accelerate the development of utility-scale solar projects across the United States. For more information, visit https://heelstoneenergy.com.

About Fifth Third

Fifth Third is a bank that’s as long on innovation as it is on history. Since 1858, we’ve been helping individuals, families, businesses and communities grow through smart financial services that improve lives. Our list of firsts is extensive, and it’s one that continues to expand as we explore the intersection of tech-driven innovation, dedicated people and focused community impact. Fifth Third is one of the few U.S.-based banks to have been named among Ethisphere’s World’s Most Ethical Companies® for several years. With a commitment to taking care of our customers, employees, communities and shareholders, our goal is not only to be the nation’s highest performing regional bank, but to be the bank people most value and trust.

Fifth Third Bank, National Association is a federally chartered institution. Fifth Third Bancorp is the indirect parent company of Fifth Third Bank and its common stock is traded on the NASDAQ® Global Select Market under the symbol “FITB.” Investor information and press releases can be viewed at www.53.com.