Flatiron Energy closed on an expansion of its existing $125 million credit facility closed in 2024 with certain funds and accounts managed by HPS Investment Partners, bringing the total facility size to $250 million. The company will utilize the credit facility for development and construction expenses associated with its development and under-construction portfolio of approximately 4.5GW / 18 GWh of utility-scale battery storage assets.
In addition, Flatiron’s existing equity capital partner, Hull Street Energy (HSE), increased its equity commitment to the company.
The upsized credit facility and equity commitments come on the heels of Flatiron’s recent announcement that it has closed approximately $540 million of financing commitments from leading financial institutions to support the construction and operations of the Taft Project in Uxbridge, Massachusetts.
Together, the new corporate capital will allow Flatiron to finish development and begin construction for several projects in New England and continue building its pipeline in other areas in the Northeast and Mid-Atlantic regions that require significant investment in clean battery storage capacity.
“This expanded relationship with HPS, a global leader in infrastructure credit, positions Flatiron to grow on its first-mover and market-leading portfolio in the Northeast and Mid-Atlantic. We are excited to have this flexible and accretive capital to grow the operating base of our independent power producer,” Dan Myers, chief investment officer of Flatiron, said.
Rob Brink, co-founder and chief financial officer of Flatiron, said, “Since Flatiron’s founding, HSE has supported our rapid growth in our core markets, thanks in part to their deep understanding of power markets, especially in Massachusetts and New York. We appreciate HSE’s expanded support and look forward to leveraging our combined expertise and resources to continue our growth.”
Sarah Wright, founder and managing partner of HSE, said, “Hull Street Energy has a successful track record investing capital in the North American power sector as it navigates rising demand and increasing operational complexity. We value the Flatiron team’s deep industry experience, strategic insight and meticulous execution. The portfolio they are building will provide essential firming resources to increasingly power constrained regions and aligns well with our mission.”
Orrick, Herrington & Sutcliffe and Clean Energy Capital represented the company. Faegre Drinker Biddle & Reath acted as legal counsel to Hull Street Energy.
