Macquarie : Asset Management partners with Sol Systems by providing $US85 million debt investment to support an initial portfolio of North American solar energy assets

Press Release

Macquarie Asset Management partners with Sol Systems by providing $US85 million debt investment

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New York, 03 June 2024

• The investment supports Sol Systems' near-term pipeline of utility-scale solar PV projects in the United States
• Debt investment aligns with Macquarie Asset Management's strategy of providing bespoke financing solutions to high-quality infrastructure assets and leading infrastructure sponsors

Macquarie Asset Management and Sol Systems jointly announced a $US85 million debt investment in support of the construction and operation of five utility-scale solar projects located in Illinois and Ohio. The investment marks the first tranche of a planned broader collaboration between the companies.

Sol Systems is a leading national renewable energy firm focused on deploying sustainable infrastructure paired with impact. The firm has recently announced partnerships with Microsoft, Google, FedEx, REI, and other large corporations to help them achieve their sustainability goals and benefit surrounding communities. The firm was established in 2008 and is backed by KKR.

Macquarie Asset Management provided the investment on a fully bilateral basis in the form of a six-year term loan facility. The facility is subordinated to senior debt and tax equity and is secured against Sol Systems' ownership interest in the underlying solar projects. The projects are expected to complete construction by year-end 2025 and once operational, all of the projects will generate revenues under long-term, fixed-price power purchase agreements with a highly creditworthy, leading software services provider.

"We are excited about the beginning of our partnership with Sol Systems," said Harlan Cherniak, Head of Infrastructure Debt in the Americas for Macquarie Asset Management. "The investment aligns with our strategy of providing customized capital structure solutions to top-tier financial partners, strategic infrastructure sponsors, and their portfolio companies, as well as our ongoing commitment to accelerate the decarbonization of the US power and transmission grid."

"We are thrilled to partner with a leader in infrastructure finance such as Macquarie Asset Management and to have closed this highly creative transaction," said James Machulak, Senior Vice President of Finance and Operations at Sol Systems. "The financing will help Sol Systems continue working towards its goal of accelerating an equitable transition to a sustainable energy future."

Since its inception in 2012, the Macquarie Asset Management Private Credit team has raised over $US23 billion in client commitments and has made over 165 infrastructure debt investments globally, spanning a range of subsectors including renewable energy, power and utilities, digital infrastructure, and transportation.

Since 2008, Sol Systems has financed or developed over $US2 billion in solar projects, is operating and building over 2 GW of projects, and serves more than 40,000 customers across its environmental commodities and infrastructure solutions businesses.

About Sol Systems

Sol Systems is a leading national renewable energy firm with an established reputation for integrity and reliability across its development, infrastructure, and environmental commodity businesses. Sol is operating and building over 2 GW of solar projects valued at over $2 billion for Fortune 500 companies, municipalities, counties, utilities, universities, and schools and provides environmental commodity portfolio management services to more than 40,000 customers across the US. The company was founded in 2008, is based in Washington, D.C., and is led by its founder. Sol Systems works with institutional clients, corporate partners, and foundations to create a more sustainable future we can all believe in.

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