Deriva Energy Completes Financing for Two Established Projects

Rhea-AI Summary

Deriva Energy has secured a $127 million debt financing for two operational energy projects. The financing, provided by Principal Asset Management and MetLife Investment Management, covers the 207 MW Ledyard Wind facility in Iowa and the 250 MW Pisgah Ridge Solar facility in Texas. Both facilities, operational since 2022, have long-term power purchase agreements with corporate buyers.

The deal represents Deriva's second financing arrangement with these firms since Brookfield's acquisition of Deriva in October 2023, following a $207 million transaction in October 2024. The financing was completed despite market challenges related to tariffs and international trade policy uncertainties.

Positive

• Successfully secured $127 million in debt financing for two operational renewable energy assets
• Both projects (457 MW total capacity) are already operational and generating revenue since 2022
• Projects backed by long-term power purchase agreements with high-quality corporate purchasers
• Demonstrates continued strong relationship with major financial institutions (second financing deal)

Negative

• Financing completed during period of market turbulence and uncertainty over tariffs
• Increased debt load could impact company's financial flexibility

Insights

Renewable Energy Finance Expert

Deriva secured $127M debt financing for two established renewable assets with long-term PPAs, demonstrating financial strength amid market uncertainty.

Deriva Energy has successfully closed a $127 million debt financing package for two operational renewable energy assets despite challenging market conditions. This transaction encompasses the Ledyard Wind facility (207 MW) in Iowa and Pisgah Ridge Solar facility (250 MW) in Texas, both operational since 2022 and backed by long-term power purchase agreements (PPAs) with creditworthy corporate offtakers.

The financing structure utilizes Senior Secured Notes provided by Principal Asset Management and MetLife Investment Management, representing sophisticated institutional capital comfortable with the risk profile of these assets. The transaction timing is particularly noteworthy as it was executed during a period of significant market volatility stemming from uncertainty around tariffs and trade policies that have recently disrupted the renewable energy sector.

This marks the second debt financing arrangement between these parties since Brookfield's acquisition of Deriva in October 2023, following a $207 million transaction in October 2024. The repeat business indicates strong investor confidence in Deriva's operational capabilities and asset quality. The combined generation capacity of 457 MW represents substantial clean energy production, while the long-term PPAs provide predictable revenue streams that enhance debt service coverage ratios and financing terms.

The successful financing demonstrates Deriva's effective capital markets execution capabilities and strategic importance within Brookfield's renewable energy portfolio. For institutional investors like Principal and MetLife, these investments align with their growing infrastructure debt allocations while providing exposure to operational assets with established cash flows rather than development-stage projects carrying greater execution risk.

CHARLOTTE, N.C., May 19, 2025 /PRNewswire/ -- Deriva Energy, LLC, a leader in clean power generation, operations and development, today announced that it has completed a $127 million debt financing for a portfolio of two operating energy assets.

Principal Asset Management^SM and MetLife Investment Management provided Senior Secured Notes to the portfolio, which is comprised of two projects owned and operated by Deriva, Ledyard Wind and Pisgah Ridge Solar. Ledyard Wind is a 207 MW wind facility in Kossuth County, Iowa, and Pisgah Ridge is a 250 MW solar facility located in Navarro County, Texas. Both projects began commercial operations in 2022 and sell power under long-term power purchase agreements with two high quality corporate purchasers. 

Thomas Hopkins, Director of Capital Markets at Deriva, said: "This transaction marks a significant accomplishment for the company and was completed during a period of heightened market turbulence driven by uncertainty over tariffs and international trade policy. We are grateful for the partnership of our investors, whose experience in renewable energy financings was extremely valuable, and we look forward to long and productive relationships with them." 

Mansi Patel, Senior Managing Director and Head of Infrastructure Debt, for Principal Asset Management said: "We are thrilled to have led the structuring of this transaction, supporting Deriva's high-quality portfolio assets with a tailored financing solution. We are excited to continue to grow our firm's strong relationship." 

This is the second debt financing arranged with Principal Asset Management and MetLife Investment Management since Brookfield's purchase of Deriva in October 2023; both firms invested in a $207 million Deriva debt transaction in October 2024. 

About Deriva Energy
Deriva Energy (formerly Duke Energy Renewables, LLC) is an established industry leader in clean energy, with over 6,200 megawatts of operating assets and over 10,500 MW of assets in development across the U.S. Headquartered in Charlotte, North Carolina, Deriva is a portfolio company of Brookfield, one of the world's largest owners and operators of renewable power and climate transition assets. For more information about Deriva, visit derivaenergy.com.

About Principal Asset Management^SM
With public and private market capabilities across all asset classes, Principal Asset Management and its investment specialists look at asset management through a different lens, creating solutions to help deliver client investment objectives. By applying local insights with global perspectives, Principal Asset Management identifies distinct and compelling investment opportunities for more than 1,100 institutional clients in over 80 markets. Principal Asset Management is the global investment solutions business for Principal Financial Group^® (Nasdaq: PFG), managing $555.8 billion in assets¹ and recognized as a "Best Places to Work in Money Management"² for 12 consecutive years. Learn more at PrincipalAM.com. 

[1] As of December 31, 2024   

[2] Pensions & Investments, "The Best Places to Work in Money Management", among companies with 1,000 or more employees, December 2024.

Contact: press@derivaenergy.com

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SOURCE Deriva Energy

FAQ

What is the size of Deriva Energy's latest debt financing deal?

Deriva Energy secured $127 million in debt financing for two operational energy projects - Ledyard Wind and Pisgah Ridge Solar.

What are the two projects included in Deriva Energy's recent financing?

The financing covers the 207 MW Ledyard Wind facility in Kossuth County, Iowa, and the 250 MW Pisgah Ridge Solar facility in Navarro County, Texas.

When did Deriva Energy's Ledyard Wind and Pisgah Ridge Solar projects begin operations?

Both projects began commercial operations in 2022.

Who provided the financing for Deriva Energy's latest debt deal?

Principal Asset Management and MetLife Investment Management provided the Senior Secured Notes for the portfolio.

How many debt financing deals has Deriva completed with Principal Asset Management and MetLife since Brookfield's acquisition?

This is the second debt financing deal, following a $207 million transaction in October 2024.