A syndicate led by J.P. Morgan has agreed to fund approximately $260 million to Enel Green Power North American Development's (EGPD) 250 MW Buffalo Dunes wind project, located in Grant, Finney and Haskell Counties, Kan.
According to EGPD, the funds are expected in the fourth quarter of this year, at which point a tax equity agreement will be signed by the parties.
The funds will be contributed by the syndicate to the Buffalo Dunes project in return for an equity interest with limited voting rights. The equity interest will allow the syndicate to obtain a percentage of the fiscal benefits attributed to the Buffalo Dunes project.
In addition to J.P. Morgan, the syndicate also includes Wells Fargo Wind Holdings, Metropolitan Life Insurance Co., and State Street Bank and Trust Co.
EFS Buffalo Dunes currently holds a 51% equity stake in the wind project, while EGPD holds the remaining 49%. EGPD has an option to purchase an additional 26% of the project from EFS Buffalo Dunes on specific dates in 2013 and 2014.
EGPD says its parent company provided a guarantee for the subsidiary's obligations under the capital contribution and tax equity agreement.