Shear Wind Inc. has announced that Glen Dhu Wind Energy LP is in the final stages of closing debt financing for Glen Dhu LP's 62.1 MW wind project in Nova Scotia.
Completion of the transaction is subject to execution of a definitive credit agreement and satisfaction of the conditions precedent to that credit agreement. The debt financing is expected to be for approximately C$107 million with a floating interest rate. The debt financing provides construction financing for the Glen Dhu North Project and then converts to a term loan, subject to the terms and conditions of the credit agreement.
Shear Wind owns approximately 51% of the limited partnership units of Glen Dhu LP. Genera Avante Holdings Canada Inc. (GAHC) owns approximately 49% of the units. In addition, GAHC owns approximately 62% of Shear Wind on a fully diluted basis.
Shear Wind has also announced that its wholly owned subsidiary, Vindt Resources Inc., has issued an unsecured promissory note to GAHC. The note is in the principal amount of approximately C$1.05 million, has a 10-month term and bears interest at 12% per annum. The financing was required to assist Vindt in moving forward in the development of its 100 MW Willow Ridge wind project in Alberta.
SOURCE: Shear Wind Inc.