Doral Renewables, a U.S. renewable-energy and storage developer, has agreed to sell up to $500 million of convertible notes to funds managed by Apollo and Migdal Insurance, an Israeli insurance and pension company.
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.
In connection with the investment, Corinne Still, partner at Apollo, will join the company’s board.
The investment follows Doral’s recent announcement of Bank of America Corporation’s commitment to provide $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 plans to work with Doral toward potential additional tax equity raises to support the final two phases of the Mammoth Solar project. I