Wind energy developer EarthFirst Canada Inc. has received an underwriting commitment for a C$212 million senior secured credit facility from WestLB AG Toronto Branch and WestLB AG New York Branch (collectively WestLB). The proceeds from this credit facility will be used to partially fund the 144 MW Dokie I project, which is entering into its construction phase.
The proposed credit facility is composed of two tranches consisting of a C$197 million construction phase plus 17-year term tranche and a C$15 million, extendible seven-year working capital/debt service reserve tranche.
As part of its mandate, WestLB may also arrange a C$55 million construction phase plus 20-year term fixed-rate tranche with institutional lenders, which would then reduce the C$197 million tranche to C$142 million.
The proposed facility is anticipated to close on or before May 15. WestLB intends to syndicate the facility in the near future. The proposed facility is subject to customary conditions precedent for transactions of this nature.
The 144 MW Dokie I wind power project is located approximately 150 kilometers southwest of Fort St. John in the Peace River Region of British Columbia. EarthFirst expects to install the first eight wind turbines during 2008 and the remaining 40 wind turbines during 2009.