Avangrid gets $3.6 billion construction, term loans for wind project

By Marisa Wong

Los Angeles, Sept. 21 – Vineyard Wind 1, LLC, a wholly owned subsidiary of Vineyard Wind 1 Pledgor, LLC, an indirect affiliate of Avangrid, Inc., entered into a credit agreement on Sept. 15 with Banco Santander, SA, New York Branch as administrative agent and MUFG Union Bank, NA as collateral agent for a $2.4 billion construction loan agreement, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The construction loans and letters of credit will be used to finance a portion of costs of the development, construction, ownership, leasing, operation and maintenance of an up to roughly 800 megawatt wind generating facility to be built in federal waters off of the coast of Martha’s Vineyard, Mass., with an export cable extending through Nantucket Sound in state waters and onshore in Barnstable, Mass. The facility will be constructed by Vineyard Wind 1, LLC.

The borrower will pay an annual commitment fee of 40 basis points on the average daily unused amount of the loan facility and each letter of credit.

The construction loans mature on the earliest of (i) the conversion date, as defined in the loan agreement; (ii) Oct. 15, 2024; and (iii) the date on which the entire outstanding principal amount of the construction loans, together with all unpaid interest and fees, will become due and payable in full, whether by acceleration or otherwise.

Additionally, on Sept. 15, Avangrid indirect wholly owned subsidiary Avangrid Vineyard Wind, LLC entered into a credit agreement with Banco Santander as administrative agent and MUFG Union Bank as collateral agent for term loans and letters of credit totaling up to $1.2 billion to be drawn at the conversion date to finance a portion of its 50% share of the project cost of the Vineyard Wind 1 project.

The term loans mature on the earliest of (i) the seventh anniversary of the earlier of the conversion date and Oct. 15, 2024; (ii) Oct. 15, 2031; and (iii) the date on which the entire outstanding principal amount of the term loans, together with all unpaid interest and fees, will become due and payable in full, whether by acceleration or otherwise.

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