Alterra Power Corp. has finalized the financing for its 200 MW Flat Top wind project, which includes sponsor investment from BlackRock Real Assets, a contruction load from Citi, Santander and RBC and other loans.
Located in central Texas, Flat Top is contracted to sell the majority of its power under a 13-year agreement with Citi. Blattner Energy Inc. will be building the project and an affiliate of Vestas-American Wind Technology is supply the turbines.
"We're extremely pleased to have our Shannon financing partners join us again at Flat Top, and to welcome a strong, new partner in BlackRock," said John Carson, Alterra's CEO. "We anticipate that the Flat Top project will serve our stakeholders and the State of Texas well, delivering a large amount of clean power into a lesser served portion of the state for years to come."
Alterra originally acquired the Flat Top wind project from Pioneer Green Energy LLC and Lavaca Wind LLC, each of whom have extensive experience in the development of several wind projects that are currently operating.
Key components of the financing include:
- Sponsor-Partner Investment: A fund managed by BlackRock Real Assets has acquired a 49% sponsor-partner interest in the project, and will co-own the project with Alterra. Alterra will continue to own 51% of the sponsor equity.
- $287 Million Construction Loan Facility: Affiliates of Citi, Santander and the Royal Bank of Canada supplied the facility, consisting of a $217 million loan plus letters of credit totaling $71 million (all amounts USD). The facility is secured by project assets and supported by a tax equity investor commitment.
- $221 Million Commitment from Tax Equity Partners: Subsidiaries of Berkshire Hathaway Energy and Citi have committed to a $221 million investment which will be realized when the project achieves commercial operations, subject to typical conditions precedent. The tax equity investment will retire the construction loan facility.
- $21 Million Expansion of Holding Company Loan: Alterra has satisfied the final conditions precedent to funding of its expanded loan facility with affiliates of AMP Capital Investors Limited. The proceeds ($21.1 million, gross) funded a portion of Alterra's sponsor equity contribution for the project.