On.Energy, a North American electric power asset owner and integrator of battery energy storage systems, closed a $25 million senior secured first lien facility with institutional asset management company Lombard Odier Investment Managers (LOIM) on behalf of funds under its management, including the LOIM Sustainable Private Credit Strategy (Strategy).
The facility will help On.Energy amplify and accelerate project development efforts as the company continues to expand its U.S. asset base, including a further 400MWh portfolio in ERCOT and a combined 1.1 GWh in development across California and Texas. The financing is architected to support costs typically subject to less-efficient financing in the market today, including site control, engineering and interconnection, project and interconnection bonding, and project M&A.
“We are proud to work with LOIM following referral from an existing Strategy portfolio company given its reputation for creating innovative and aligned capital solutions. Despite tailwinds from the Inflation Reduction Act (IRA), structured financial solutions with top-tier partners like Lombard Odier Investment Managers are essential to put critically-needed, resilient storage capacity online,” said Alan Cooper, CEO of On.Energy, who led the transaction together with CFO David Fernandes. “Across the country, electrical grids are more vulnerable now than ever, particularly as unprecedented growth of low-cost intermittent renewables continues to drive grid decarbonization. Our solutions enable industrial customers and power grids to operate more efficiently while supporting the transition to net zero.”
“We are pleased to further leverage our private markets platform and expertise in delivering a tailored capital solution for On.Energy,” Jean-Pascal Porcherot, co-head of LOIM and Managing partner of Lombard Odier Group, said. “Their impressive track record of sustainable real asset creation speaks to the strength of the opportunity set in catalyzing scale for non-sponsored providers of climate solutions.”
“At Lombard Odier, we believe private assets present a compelling pathway for investing in pure-play climate solution providers, including those who play a pivotal role in the electrification of our economy,” Thomas Hohne-Sparborth, head of sustainability research at LOIM, said. “We see aligned opportunities to support and accelerate these business models by leveraging our sustainability capabilities.”
