Renewable energy independent power producer sPower has closed on debt and tax equity financing for the Prevailing Wind Park in South Dakota.
Lenders for the approximately $319 million construction/term facility are HSBC and CIBC. The banks’ commitment will be backed by a $189 million tax equity commitment from Bank of America Merrill Lynch.
Located in Bon Homme in Charles Mix and Hutchinson counties, the 218 MW wind farm represents sPower’s largest project to date. Electricity generated by the facility will be sold to a utility under a 30-year power purchase agreement.
“This is a milestone project for us, and it is rewarding to realize success with wind similar to what we have historically done with solar,” comments David Shipley, chief financial officer at sPower. “We have always expected wind power to be an increasingly large portion of the sPower portfolio. This achievement strengthens our desire to leg further into the wind space.”
CohnReznick Capital served as financial advisor, and McDermott Will & Emery served as sPower’s counsel in the deal.
Headquartered in Salt Lake City, sPower is owned by a joint venture of The AES Corp. and the Alberta Investment Management Corp.