Alterra Power Corp. and Starwood Energy Group Global have completed a $287 million construction loan for the 204 MW Shannon wind project, located in Clay County, Texas.
The loan was supplied by affiliates of Citi, Santander Bank NA and the Royal Bank of Canada, and it consists of a $212 million loan plus $75 million in various letters of credit. The loan is supported by a $219 million tax equity investment commitment supplied by subsidiaries of Citi and Berkshire Hathaway Energy.
The Shannon wind project is currently under construction in Clay County under an engineering, procurement and construction contract with Mortenson Construction's Wind Energy Group. The project is expected to begin commercial operations later this year or in early 2016. GE is supplying 119 wind turbines (1.71 MW output, 103-meter rotor diameter) for the project and will provide operations and maintenance services for the turbines under a long-term contract. The project will sell the majority of its power under a 13-year contract with Citigroup Energy Inc.
Investment affiliates of Alterra and Starwood Energy own the project in a 50/50 partnership ($125 million combined equity investment).