WestLB's Global Energy Group has closed $317 million of senior secured credit facilities for the construction of Renewable Energy System's 165.6 MW Hackberry wind farm in Shackelford, Texas.
The long-term tranche was priced at 65 basis points inside of the latest comparable project finance bond. The tenor of the deal is construction plus 20 years. All power generated by the project for the first 15 years of commercial operations will be sold under an agreement to Austin Energy, resulting in five years of merchant tail risk. This is the only green field single-asset wind farm financing to achieve a 21-year tenor in the marketplace, showing WestLB's position in the market and relationships with investors, according to the company.
The credit facilities consist of a long-term loan of $167.8 million with a private placement of $85 million and a floating-rate tranche of $82 million. The construction loan is for $134.5 million with a working-capital facility of $14 million. The construction of the project is expected to require 12 months or less, and commercial operations are expected to commence by the end of the year.