Western Wind Energy Corp. has closed a $24 million financing deal for its 10.5 MW combined wind and solar project located in Kingman, Ariz. The financing includes a one-year construction loan convertible to a seven-year term loan, a bridge loan to the U.S. Treasury cash grant and some vendor financing. Construction is expected to start immediately.
KeyBank National Association has arranged a construction loan of $16 million and a cash-grant bridge loan of $4.2 million. The bridge loan will be repaid upon receipt of the cash grant, and the $16 million construction loan would convert to a seven-year term with a hedged fixed interest rate averaging approximately 6.78% per annum. The term loan is amortized over 18 years. The KeyBank loans are secured by the assets of Kingman Energy Corp., and a guarantee through the construction period has been provided by Western Wind.
A $4 million subordinated loan was provided by a vendor at an interest rate of 6% per annum and secured by a second lien on the cash grant and assets of Kingman Energy Corp. The loan matures on the earliest of the date upon which the cash grant is received and 135 days after the commercial operations date.
In related company news, Western Wind has granted to employees, consultants and directors 3 million incentive stock options at a price of $1.09 per share exercisable for a period of five years.
SOURCE: Western Wind Energy Corp.