Sammons Renewable Energy (SRE) has closed hedge, tax equity and construction financing for Midway Wind, a 163 MW wind farm in Texas.
Tax equity investors include a subsidiary of Citi and BHE Renewables LLC, a wholly owned subsidiary of Berkshire Hathaway Energy Co. The construction debt facility was funded by subsidiaries of Siemens Financial Services and Citi.
In conjunction with the financial close, Midway Wind has entered into a long-dated power price hedge agreement with an affiliate of Citi for a portion of the power generated by the wind farm. Franklin Park assisted with the structuring and financing on behalf of SRE.
Apex Clean Energy developed the Midway Wind farm and is providing ongoing construction and asset management services. The project, comprising Siemens Gamesa wind turbines, is expected to begin commercial operations this December.
“Midway’s location near Texas’ wind-rich Gulf Coast and its proximity to the Electric Reliability Council of Texas’ (ERCOT) South Hub position the development to fill an energy gap that will widen as coal-generation in ERCOT is retired,” says Heather Kreager, CEO of Sammons Enterprises, the parent company of SRE. “By continuing to work with Apex Clean Energy, who will manage construction efforts, we are confident this project will be a valuable asset in our growing renewable energy portfolio.”
Akin Gump Strauss Hauer & Feld LLP provided legal advice to SRE, and Leidos Engineering LLC is acting as the independent engineer. Franklin Park will manage the Midway Wind farm on behalf of SRE.
The transaction contributes to Citi’s $100 billion Environmental Finance Goal to support environmental solutions and accelerate the global transition to a low-carbon economy. As part of its Sustainable Progress Strategy, launched in 2015, Citi announced a commitment to finance and facilitate a total of $100 billion over 10 years to finance activities that reduce the impacts of climate change and create environmental solutions that benefit people and communities.
