Starwood Energy Group Global LLC, a Connecticut-based private investment firm focused on energy infrastructure, has completed agreements to finance and construct its first wind farm, a 211 MW project 45 miles south of Lubbock, Texas.
The Stephens Ranch project, which represents the first of two phases that will total 377 MW, will use GE 1.7-100 turbines and be built by Wanzek Construction, with completion scheduled for late 2014.
Affiliates of GE Energy Financial Services, Banco Santander and Citi have committed to invest tax equity in the project, and affiliates of Starwood Energy Group have committed 100% of the cash equity. Santander Bank N.A. and Citi are also providing a non-recourse construction debt facility (including a letters of credit facility) totaling approximately $265 million. Additional financial details were not disclosed.
‘For our first wind investment, we are pleased to have assembled a strong team of very experienced lenders, tax equity investors and contractors,’ says Himanshu Saxena, managing director of Starwood Energy Group. ‘We look forward to working together with the local communities to make this project a success.’
An investment affiliate of Starwood Energy Group acquired Stephens Ranch in August 2013 from Mesa Power, an entity owned by T. Boone Pickens.
‘This transaction enabled us to combine our Texas wind energy investing expertise with the skills of our tax equity partners, Santander and Citi, to support Starwood Energy on this wind farm, a well-structured project using proven technology,’ comments Kevin Walsh, managing director and head of power and renewable energy at GE Energy Financial Services.