Atlantic Power Corp. says it has purchased an additional 48% interest in the Canadian Hills wind power project, a 300 MW wind farm located near El Reno, Okla., 20 miles west of Oklahoma City.
The company closed a $310 million nonrecourse, project-level construction financing facility for the $470 million project, for which Morgan Stanley serves as sole lead arranger. The financing includes a $290 million construction loan and a $20 million five-year letter of credit facility. The construction loan is structured to be repaid by a tax-equity investment when the project commences commercial operation.
With this closing, the company owns 99% of the project and says it is committed to investing approximately $180 million of equity (net of financing costs) following the funding of the construction financing. Morgan Stanley is also providing bridge-financing commitments that backstop Atlantic Power's equity investment and a portion of the tax-equity investments.
The Canadian Hills project was developed by Charlottesville, Va.-based Apex Wind Energy Holdings LLC. It has long-term power purchase agreements for 100% of its output with Southwestern Electric Power Co., the Oklahoma Municipal Power Authority, and Grand River Dam Authority. The project will deploy Mitsubishi 2.4 MW MWT102 and REpower 2.05 MW MM92 wind turbines.
Apex will retain a 1% interest in the project. Apex will manage the construction of the project, and Atlantic Power will oversee operations and be the asset manager. The project is expected to generate enough renewable energy to power the equivalent of over 100,000 homes, according to Atlantic Power.
Construction under the terms of a fixed-price, balance-of-plant contract will begin immediately, and Atlantic Power expects the project to be fully operational by November.