Terra-Gen Power LLC, an affiliate of ArcLight Capital Partners and Global Infrastructure Partners, has closed a $631 million financing deal for Alta Wind VI and VIII, two 150 MW wind projects.
In combination with the Alta Wind I-V projects, which reached commercial operation earlier this year, the completion of the Alta Wind VI and VIII projects will bring the total capacity of the Alta Wind Energy Center (AWEC), located in Tehachapi, Calif., to approximately 1 GW.
The Alta VI and VIII financing includes a seven-year construction and term loan, a bridge loan to the cash grant from the U.S. Department of Treasury and ancillary credit facilities.Â
The proceeds of this financing will be used to reimburse funds previously advanced by ArcLight Capital Partners and Global Infrastructure Partners to fund the development of the projects as well as to fund the balance of construction costs. The projects will utilize 100 V90-3 MW turbines manufactured by Vestas-American Wind Technology Inc.
Credit Agricole Corporate and Investment Bank and MUFG Power & Utilities Group acted as co-bookrunners and co-structuring leads for the financing, while ING Capital, Rabobank, Santander and RBS Securities Inc. acted as joint lead arrangers.Â
In addition, the lender group also included CoBank, Bank of Montreal, Key Bank, Lloyds, DZ Bank and Helaba.Â
Alta Wind VI and VIII, like all the earlier phases of AWEC, will sell their renewable energy to Southern California Edison (SCE) under a 1.5 GW power purchase agreement, and will be managed, operated and controlled by Terra-Gen Power.Â
The projects will each interconnect to and utilize SCE's Tehachapi Renewable Transmission Project. Blattner Energy Inc. is leading the construction of the projects, which are expected to be complete by the end of the year.
