Longroad Energy Secures $600 mn Debt Financing to Bolster Renewable Energy Expansion

Dollar in Green Business

Longroad Energy Holdings, a prominent U.S.-based renewable energy developer, has announced a significant milestone in its growth trajectory with the closure of a substantial $600 million debt financing. This financial infusion is aimed at accelerating the expansion of its diverse portfolio encompassing wind, solar, and battery projects.

Comprising a structured credit facility, the financing arrangement includes a $275 million term loan, a $175 million revolving credit facility, and a $150 million letter of credit facility. This substantial injection of capital follows a notable $500 million equity investment in August 2022 by Infratil, New Zealand Superfund, and MEAG, which marked a strategic pivot for Longroad towards increased project ownership rather than sales.

Paul Gaynor, CEO of Longroad, expressed enthusiasm about the new financial backing, highlighting its pivotal role in propelling the company’s owned operational fleet to surpass 9 gigawatts by 2027. Gaynor emphasized that the funding would also underpin the development of their robust 30-gigawatt pipeline of renewable energy projects. He extended gratitude to both investors and banking partners for their continued confidence in Longroad’s platform and execution, welcoming the institutions involved in this latest financing.

The syndicated corporate credit facility was orchestrated under the leadership of Apterra Infrastructure Capital, a platform company associated with Apollo, with Barclays and HSBC acting as joint lead arrangers.

This significant infusion of capital underscores Longroad Energy’s commitment to spearheading sustainable energy initiatives, reinforcing its position as a key player in the renewable energy sector. The financing not only serves as a catalyst for operational expansion but also solidifies Longroad’s position in driving forward the transition towards a more sustainable and renewable energy landscape.