Terra-Gen Power Announces Closing of $650 Million Construction Financing for Alta Wind VII & IX to Continue Build-Out of Nation's Largest Wind Energy Facility
The completion of the Alta Wind VII & IX projects will bring the total capacity of the Alta Wind Energy Center ("AWEC") located in Tehachapi, CA to 1,320 MW, of which 1,020 MW are currently in operation
NEW YORK--Terra-Gen Power, LLC ("Terra-Gen"), an affiliate of ArcLight Capital Partners and Global Infrastructure Partners, announced today that it has closed a $650 million financing for the 168 megawatt ("MW") Alta Wind VII and 132 MW Alta Wind IX projects. The completion of the Alta Wind VII & IX projects will bring the total capacity of the Alta Wind Energy Center ("AWEC") located in Tehachapi, CA to 1,320 MW, of which 1,020 MW are currently in operation. The American Wind Energy Association's recent market report for 2011 identified AWEC as the nation's largest wind farm. Terra-Gen recently sold the Alta Wind VIII (150 MW) phase to Brookfield and has entered into an agreement to sell the Alta Wind VI phase (150 MW) to Everpower.
The Alta VII and IX financings include construction and seven-year term loans, bridge loans to the ITC cash grants from the US Department of Treasury, and ancillary credit facilities. The proceeds of this financing will be used to reimburse funds previously advanced by ArcLight Capital Partners and Global Infrastructure Partners for development of the projects, as well as to fund the balance of the projects' construction costs. Together the projects will utilize 100 V90-3.0 MW turbines manufactured by Vestas-American Wind Technology, Inc.
Mitsubishi-UFJ Financial Group affiliate Union Bank and RBS Securities acted as Co-Bookrunners for the financing, while Bank of Montreal, Canadian Imperial Bank of Commerce, Key Bank, KfW IPEX Bank, and Santander acted as Joint Lead Arrangers. In addition, the lender group also included Sumitomo, BayernLB, DZ Bank, and Associated Bank. The syndication of the facilities received significant interest from a broad range of commercial lenders and was oversubscribed.
"We are excited to continue to build upon important existing lender relationships while at the same time broadening Terra-Gen's bank group with this financing," said Jim Pagano, CEO of Terra-Gen. "With this financing we continue the ambitious build-out of the nation's largest wind energy center. We are proud of the economic and job growth that AWEC is delivering, and of our contribution in helping the state of California meet its renewable energy goals."
Alta Wind VII & IX, like all earlier phases of the Alta Wind Energy Center, will sell their renewable energy to Southern California Edison ("SCE") under separate power purchase agreements carved out from a 1,550 MW master power purchase agreement, and will be managed, operated and controlled by Terra-Gen Power. The projects will each interconnect to and utilize SCE's Tehachapi Renewable Transmission Project. Blattner Energy, Inc. is leading the construction of the projects which are expected to be complete by in the 4th quarter of 2012.
When the initial 1,550 MWs of the Alta Wind Energy Center are constructed, the Alta projects will have increased wind industry jobs in California by 20 percent, and created more than 3,000 domestic manufacturing, construction, operation and maintenance jobs. The Alta projects will also contribute more than $1.2 billion to the local economy in Kern County, and reduce carbon dioxide emissions by more than 52 million metric tons, the equivalent of taking 446,000 cars off the road.
ABOUT ALTA WIND VII & IX AND TERRA-GEN:
Alta Wind VII & IX are each owned by California Highwind Power, a subsidiary of Terra-Gen. Terra-Gen is an affiliate of ArcLight Capital Partners and Global Infrastructure Partners. With more than 1,550 MWs of generating capacity in operation across 26 renewable power facilities, and with 5,000 MWs in development, Terra-Gen Power is one of the nation's leading renewable energy providers and the only American company that provides electricity on a utility scale from three major renewable energy sources: wind, solar and geothermal power. Terra-Gen is headquartered in New York City with offices in San Diego, Reno, Denver, and Charlotte. More information about Terra-Gen can be found at http://www.terra-genpower.com.
ABOUT ARCLIGHT CAPITAL PARTNERS:
ArcLight is an energy-focused private equity investment firm, having invested over $9 billion of capital since its inception over a decade ago. ArcLight has successfully sourced, managed and realized investments through multiple energy industry cycles. The Firm's investment team has extensive energy expertise, investing experience, industry relationships, and specialized asset level value creation capabilities. ArcLight is headquartered in Boston, Massachusetts with offices in New York and Luxembourg. More information about ArcLight can be found at http://www.arclightcapital.com.
ABOUT GLOBAL INFRASTRUCTURE PARTNERS ("GIP"):
GIP is an independent infrastructure fund that invests worldwide in infrastructure assets and businesses in both OECD and selected emerging market countries. GIP has offices in New York and London with an affiliate in Sydney and portfolio business operations headquarters in Stamford, Connecticut. For more information, visit www.global-infra.com.