Western Wind completes $249 million financing for Windstar project

By Lisa Kerner

Charlotte, N.C., Dec. 17 - Western Wind Energy Corp. closed a $249 million financing for its 120-megawatt Windstar project in Tehachapi, Calif.

The financing includes a 21-year construction and term loan, a bridge loan to the ITC Cash Grant from the U.S. Dept. of Energy and vendor financing, according to a Western Wind news release.

Institutional investors, led by Manufacturers Life Insurance Co. and its U.S. division John Hancock Financial Services, provided initial funding of $178.5 million and a conditional commitment for a further $26 million to be funded on or before Sept. 30, 2011.

The funding bears interest at a fixed rate of 7.249% over the 21-year life of the loan.

Assets of Windstar Energy, LLC and a pledge of the common shares of Mesa Wind Power Corp. secure the loan.

Rabobank provided a $55 million cash grant bridge L/C, of which $25 million was drawn at financial close.

The remaining $30 million L/C will be drawn down through the construction period on a pro rata basis with the institutional lenders. Interest will be about 5.5% and the L/C fee on the undrawn portion will be 4.0% per annum.

Based in Vancouver, B.C., Western Wind operates wind-energy electrical generation facilities.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.