Doral Renewables LLC dba Doral LLC (“Doral” or the “Company”), a
leading U.S. renewable energy and storage developer, announced
today that it has entered into an agreement to sell up to $500
million of convertible notes (the “Notes”) to funds managed by
Apollo (NYSE: APO) affiliates (the “Apollo Funds”) and Migdal
Insurance, a leading Israeli insurance and pension company
(“Migdal”). The Notes are convertible to common equity interests in
the company at a pre-money valuation of $1.5 billion. Doral intends
to use the proceeds from the transaction to fund investments in
renewable energy and storage projects being developed by the
Company. In connection with the investment, Apollo partner Corinne
Still will join the Company’s Board.
The investment follows the Company’s
announcement in June of Bank of America Corporation’s (“Bank of
America”) commitment to provide approximately $175 million of tax
equity to support the Company's flagship Mammoth North project.
Subject to further project milestones, diligence, underwriting and
corporate approvals, Bank of America is willing to work together
with the Company towards potential additional tax equity raises to
support the final two phases of the Mammoth Solar project. In
addition, Bank of America has supported the Company with the
issuance of approximately $75 million of Standby Letters of Credit
through a back-to-back arrangement with a correspondent banking
partner.
“We are grateful to our new partners at Apollo
and Bank of America for recognizing the tremendous value embedded
in Doral’s project pipeline as well as in our platform as a whole
and to Migdal for their continuing support,” said Evan Speece,
Chief Financial Officer of Doral. “These new capital commitments,
from leading investors in the space acting collaboratively with
each other and Doral, will allow us to commercialize nearly 2 GW of
late-stage projects, advance several gigawatts of additional
projects from early-stage development to start of construction and
bring us closer to our goal of creating a leading clean energy IPP
in the United States.”
Doral President and CEO Nick Cohen added, “This
additional growth capital from Apollo, Migdal and Bank of America
reinforces our position as a leading developer, owner and operator
of utility scale clean energy projects across the United States.
Our renewable energy projects offer attractive opportunities to
invest behind low-risk, environmentally friendly assets, while
providing critical clean energy supply to help revitalize
communities across rural America.”
Apollo Partner Corinne Still said, “Investing in
Doral represents an opportunity to partner with a leading solar
developer and highlights Apollo’s commitment to investing in
companies that are enabling the energy transition. We believe
Doral’s focus on large-scale projects, strong landowner
relationships and high conversion rates position the Company to be
one of the long-term winners in the market.”
Dylan Foo, Head of Infrastructure at Apollo,
said, “We’re pleased to support Doral’s growth as the company
continues to execute on its robust project pipeline. By continuing
to scale and bring additional renewable energy facilities online,
Doral will enhance grid stability in markets across the country
while creating jobs in local communities and promoting a cleaner
planet.”
Migdal’s CIO Erez Migdali said: “We are excited
to participate in this investment round, having first invested in
Doral in June 2021. Since then, we have watched Doral continue to
achieve its plans under the stewardship of Nick and Evan. This
round is a significant milestone for Doral, securing capital to
advance a meaningful portion of the Company’s pipeline. We are
pleased to welcome Apollo and Bank of America, two of the most
reputable financial institutions in the US, who we believe are
excellent partners as Doral enters its next phase of growth. Migdal
continues to establish itself as Israel's leading institutional
investor in sustainable infrastructure, and our continued support
of Doral fits within our targets to be a leader in the energy
transition.”
The late-stage projects that Doral intends to
commercialize by 2024 include the three phases of the Mammoth Solar
project in Indiana and additional projects in PJM and SERC. The
remaining 8 GW of Doral’s portfolio is comprised of solar and
solar-plus-storage projects across the PJM, MISO, SERC, ERCOT,
NYISO, SPP and NEISO markets.
Guggenheim Securities, LLC served as exclusive
financial advisor and placement agent, BofA Securities served as
capital markets advisor and Kirkland & Ellis LLP served as
legal counsel to Doral in connection with the transactions. Allen
& Overy LLP served as legal counsel to the Apollo Funds.
About Doral Renewables LLC
Doral Renewables is a U.S. company owned by
Doral Renewable Energy Resources Group (TASE:DORL, “Doral Group”),
a publicly traded Israeli renewable energy company, Migdal Group,
Israel’s largest insurance company and pension manager, and U.S.
members. Doral is developing a 10 GW wind, solar, and storage
portfolio across 20 states, eight electricity markets and covering
approximately 100,000 acres of land. It has over $2 billion in
long-term wholesale power purchase agreements with U.S.
customers.
About Doral Group
Doral Group is a publicly traded company on the Tel Aviv Stock
Exchange in Israel (DORL) and is a global renewable energy leader,
holding hundreds of long-term revenue-generating renewable energy
assets. Doral Group is active, inter alia, in Israel, Europe, and
the United States. Doral Group is also emerging as a worldwide
leader in the field of solar + storage solutions, following its
award of Israel’s biggest solar + storage tender to build
approximately 750 MWdc + 1,400MWh of storage facilities in
Israel.
About Apollo
Apollo is a high-growth, global alternative asset manager. In
our asset management business, we seek to provide our clients
excess return at every point along the risk-reward spectrum from
investment grade to private equity with a focus on three investing
strategies: yield, hybrid, and equity. For more than three decades,
our investing expertise across our fully integrated platform has
served the financial return needs of our clients and provided
businesses with innovative capital solutions for growth. Through
Athene, our retirement services business, we specialize in helping
clients achieve financial security by providing a suite of
retirement savings products and acting as a solutions provider to
institutions. Our patient, creative, and knowledgeable approach to
investing aligns our clients, businesses we invest in, our
employees, and the communities we impact, to expand opportunity and
achieve positive outcomes. As of June 30, 2022, Apollo had
approximately $515 billion of assets under management. To learn
more, please visit www.apollo.com.
About Migdal
Established in 1942, Migdal Insurance Company Ltd. (TASE: MGDL)
is a leading Israeli financial institution providing insurance,
pension, and provident products to 2.3 million customers. As of
June 30, 2022, Migdal had approximately $95 billion of assets under
management. To learn more, please visit www.migdal.co.il.
Doral Renewables LLC Contact Information:
Maya Ziv WolfDirector of Communicationsmaya@doral-energy.com
Apollo Contact Information
For investors:Noah GunnGlobal Head of Investor
RelationsApollo Global Management, Inc.(212)
822-0540IR@apollo.com
For media:Joanna RoseGlobal Head of Corporate
CommunicationsApollo Global Management, Inc.(212) 822
0491Communications@apollo.com
Apollo Global Management (NYSE:APO)
Historical Stock Chart
Von Mär 2024 bis Apr 2024
Apollo Global Management (NYSE:APO)
Historical Stock Chart
Von Apr 2023 bis Apr 2024