FPL Energy Completes Subsidiary Financing

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Heartland Wind LLC, an indirect, wholly owned subsidiary of Juno Beach, Fla.-based FPL Energy LLC, has entered into a $322.5 million limited-recourse senior secured variable rate term loan maturing in December 2016.

FPL Energy intends to use the proceeds of the loan to reimburse, in part, capital contributions made by FPL Energy to develop and construct facilities totaling 309 MW of wind generation and associated transmission facilities in North Dakota and Iowa.

‘In one of the most challenging credit markets in recent times, we were able to secure financing on attractive terms, further validating our successful model of developing high-quality, economically attractive projects that can be financed on a limited recourse basis in the project debt markets,’ says Armando Pimentel, chief financial officer of FPL Group, the parent company of FPL Energy.

Under the terms of the loan agreement, the amount of the loan may be increased up to a maximum aggregate principal amount of $400 million on or before March 31, 2009. Interest on the loan is payable quarterly, and principal is partially amortizing with a balloon payment at maturity. The loan is secured by liens on these wind generation assets and associated transmission facilities and the ownership interest in Heartland Wind.

SOURCE: FPL Energy LLC

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