Smoky Mountain Holdings LLC, a joint venture between Argo Infrastructure Partners and Brookfield, has closed a $435 million senior secured notes financing.
The financing, announced by Argo today, is the first of its kind in the US private placement market, combining fixed and variable amortization features. Both tranches were oversubscribed by investors.
Smoky Mountain Holdings owns and operates the Cheoah, Calderwood, Chilhowee, and Santeetlah hydroelectric dams in Tennessee. The deal follows a 10-year power purchase agreement signed in 2024 with the Tennessee Valley Authority. That agreement is expected to supply more than 14 GWh of hydroelectric power and reduce more than 11 million tons of carbon emissions over the contract term.
“We’re proud to have closed this first-of-its-kind financing structure, which reflects Smoky’s status as a best-in-class, flexible and dispatchable clean energy portfolio,” said Brice Soucy, Argo director at Smoky. “As digitalization, artificial intelligence, and advanced industries redefine the future of energy demand for TVA, this transaction not only fortifies the nation’s energy grid but also powers the next wave of innovation, delivering the reliable, low-carbon energy that will shape tomorrow’s economy and the technological breakthroughs of the future.”
Jason Zibarras, founder and managing partner of Argo, said the financing highlights the company’s focus on supporting clean energy in the Tennessee Valley. “This innovative investment grade financing represents another step in supporting clean energy in the Tennessee Valley and the resilient, low-carbon energy that the AI economy demands,” he said. “This project demonstrates our and Smoky’s commitment to innovation, powering economic growth, and U.S. leadership in the global AI ecosystem.”
