Eagle Point Credit Management, a private credit investment manager, provided a $28.5 million senior secured term loan to Heritage Energy Storage DevCo I, owned by Heritage Energy, a Texas-based solar and storage developer. Heritage Energy is an independent company to Heritage Power, a retail electricity provider offering customized residential and commercial energy plans to customers across deregulated markets in the state.
The financing supports Heritage’s strategy to develop, build and operate a network of sub-10 MW battery storage and solar projects across approximately 40 sites in Texas. The portfolio is designed to operate as a virtual power plant.
“This transaction exemplifies Eagle Point’s ability to directly originate and deliver highly structured, asset-backed financing solutions under complex and time-sensitive circumstances,” Brittany Pinkerton, principal, infrastructure credit at Eagle Point, said. “Our deep industry expertise and collateral-focused analysis enabled our team to efficiently execute this investment ahead of a critical year-end deadline for Heritage. Their distributed generation model, combined with strong collateral and downside protection, aligns well with our disciplined approach to infrastructure credit investing, and we look forward to the success of the projects.”
Tim Sanchez, CEO of Heritage Power, said, “We are incredibly excited to partner with Eagle Point on this financing. Eagle Point was a unique and differentiated experience for us; they demonstrated true domain knowledge of our industry and were incredibly responsive in delivering a capital solution under the time pressure of year-end. Their commitment lays the foundation for the next phase of our growth as we advance the development of more than 40 battery and solar distributed-generation sites across Texas. Together, we’re strengthening the state’s energy infrastructure and delivering reliable, cleaner power to the communities that depend on it.”
Hudson Sustainable Group served as strategic advisor and co-sponsor to Heritage in connection with the transaction, working alongside management on the formation and capitalization of the Heritage distributed generation and energy storage platform. Baker Botts and Denmon Sigler Law served as counsel for Heritage.
