Treaty Oak Secures $300 Million For Clean Energy Push

To help the fast growth of its 17. 3-gigawatt (GW) pipeline of renewable energy projects throughout the nation, US-based independent power producer Treaty Oak Clean Energy has successfully closed a $300 million senior secured corporate credit facility. The funding is expected to expedite development in important areas like Arkansas and Louisiana and is a major enhancement to the company's national portfolio, which includes utility-scale solar, wind, and battery energy storage system (BESS) projects.

Leading this fundraising round was a group of internationally known lenders. ING Capital LLC, Nomura Corporate Funding Americas LLC, and Sumitomo Mitsui Banking Corporation (SMBC) acted as Coordinating Lead Arrangers. While Nomura was named as the Administrative Agent, ING served as the Green Loan Agent in this arrangement stressing the deal's compatibility with sustainability ideas. On behalf of the borrower and Norton Rose Fulbright US LLP representing the lenders, Latham and Watkins LLP offered legal representation; PEI Global Partners provided exclusive financial counseling to Treaty Oak.

In light of changing US energy policies and regulatory frameworks, Treaty Oak CEO Chris Elrod underlined the strategic significance of the financing in allowing the firm to fast-track its clean energy initiatives. “This facility strategically positions us to accelerate our buildout of important renewable projects in the US and opportunistically approach a market that is experiencing significant regulatory change,” Elrod said. “This financing reflects strong lender confidence in our business model and management team and gives us a competitive advantage. ”

Key parts of Treaty Oak's audacious growth plan are meant to be funded by the $300 million credit facility. The revenues will help to finance the supply of interconnection and offtake letters of credit, the purchase of equipment, and other general company expenses vital to the successful implementation of the company's vast renewable energy infrastructure. As Treaty Oak progresses major renewable initiatives meant to change the US energy grid toward sustainability and resiliency, the funding comes at a crucial moment.

Sky Fabian, a PEI Global Partners Partner, claims that the agreement marks a major accomplishment not only for Treaty Oak but also for the larger American clean energy industry. Fabian observed, “This deal emphasizes the strength and capacity of the Treaty Oak platform, backed by a syndicate of high-caliber international lenders. We are honored to help the Company obtain a very profitable credit facility that will enable the commercialization of the next wave of clean energy development initiatives across the US. ”

Among the most thorough in the country, Treaty Oak's development pipeline is deliberately dispersed over important power centers in the United States. With discussions ongoing for an additional 1 GW, the business has already locked long-term power purchase agreements (PPAs) or exclusivity rights for around 485 megawatts (MW). The ongoing construction of the 100 MW Redfield solar plant in Arkansas, which started in 2024, further proves this strong development plan. Additionally, Treaty Oak is ready to start building another 385 MW of solar energy development in Louisiana in 2025.

This credit facility marks a turning point in Treaty Oak's development path as the company positions itself at the forefront of the switch to renewable energy in the United States. With a varied pipeline including solar, wind, and BESS technologies, Treaty Oak is assisting in the decarbonization of the energy sector, hence supporting national and international climate goals. The funding helps the business not only carry out immediate projects but also improves its capacity to seize future chances in a quickly changing energy environment.

The alliance with premium financial institutions highlights investor trust in Treaty Oak's strategy and operational execution. Supported by advantageous policies and rising need for clean power, Treaty Oak Clean Energy is well-suited to be a key player in helping to define the next chapter of the energy transformation in the US as renewable energy picks pace there.