VANCOUVER, June 30, 2015 /CNW/ - Alterra Power Corp. (TSX: AXY) and Starwood Energy Group Global, LLC are pleased to announce the completion of a $287 million construction loan facility (all amounts USD) for the 204 MW Shannon wind project. The facility was supplied by affiliates of Citi, Santander Bank, N.A. and the Royal Bank of Canada, and consists of a $212 million loan plus $75 million in various letters of credit. The loan is supported by a $219 million tax equity investment commitment (subject to typical conditions precedent) supplied by subsidiaries of Citi and Berkshire Hathaway Energy.
The Shannon wind project is currently under construction in Clay County, Texas under an EPC contract with Mortenson Construction's Wind Energy Group. The project is expected to begin commercial operations in late 2015 or early 2016. General Electric Company is supplying 119 wind turbines (1.71 MW output, 103m rotor diameter) for the project, and will provide operations and maintenance services for the turbines under a long-term contract. The project will sell the majority of its power under a 13-year contract with Citigroup Energy Inc.
Investment affiliates of Alterra and Starwood Energy own the project in a 50/50 partnership ($125 million combined equity investment).
"We're pleased to complete the Shannon financing on commercially favourable terms with world-class partners," said John Carson, CEO at Alterra. "The Shannon project will provide sufficient clean power to meet the needs of more than 60,000 households, and cash flows from the project will enable the further extension of Alterra's renewable power platform."
"We have been very active in the wind sector and are pleased to have made this investment," added Himanshu Saxena, Managing Director of Starwood Energy. "This is an excellent example of our value-add approach of partnering with developers in building large infrastructure projects."
About Alterra Power Corp.
Alterra Power Corp. is a leading global renewable energy company, operating five power plants totaling 553 MW of generation capacity, including British Columbia's largest run-of-river hydro facility and largest wind farm, and two geothermal facilities in Iceland. Alterra owns a 247 MW share of this capacity, generating over 1,250 GWh of clean power annually.
In addition to the Shannon project, Alterra is also constructing the 62 MW Jimmie Creek run-of-river hydroelectric project in British Columbia, which is expected to be in operation by Q3 2016 (51% owned by Alterra). Upon completion of these two projects Alterra will operate seven power plants totaling 819 MW of capacity and will own a 381 MW share of this capacity, generating over 1,700 GWh of clean power annually. Alterra has an extensive portfolio of exploration and development projects and a skilled international team of developers, builders and operators to support its growth plans.
The company trades on the Toronto Stock Exchange under the symbol AXY and OTC in the United States as MGMXF.
About Starwood Energy Group Global, LLC
Starwood Energy Group is a private investment firm based in Greenwich, CT that specializes in energy infrastructure investments. Through its general opportunity funds known as Starwood Energy Infrastructure Fund I and II, and other affiliated investment vehicles, Starwood Energy Group manages total equity commitments of more than $2 billion. The Starwood Energy Group team brings extensive development, construction, operations, acquisition and financing expertise to its investments, with a focus on the natural gas and renewable power generation, and transmission sectors. To date, Starwood Energy Group and its affiliates have committed to energy infrastructure transactions totaling approximately $4 billion in enterprise value. Starwood Energy Group is an affiliate of Starwood Capital Group Global, L.P. Additional information about Starwood Energy Group as well as Starwood Capital Group can be found at www.starwoodenergygroup.com.
Cautionary Note Regarding Forward-Looking Information
Certain statements and information included in this news release are "forward-looking information" within the meaning of Canadian securities laws that involve risks and uncertainties. Forward-looking information relates to future events or future performance and reflects management's expectations and beliefs regarding future events as of the date hereof. Examples of forward-looking information in this news release include our estimates of annual generation and the date the Shannon and Jimmie Creek projects will achieve commercial operations. Forward-looking information is based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection. Since forward-looking information relates to future events and conditions, by its very nature it requires making assumptions and involves inherent risks and uncertainties. Alterra cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking information. Material risk factors and assumptions include the ability to complete construction on the Shannon and Jimmie Creek projects and the ability of the Shannon project to satisfy the conditions precedent to the tax equity funding commitment as well as those set out in the management's discussion and analysis section of Alterra's most recent annual and quarterly reports and in Alterra's Annual Information Form for the year ended December 31, 2014. Although Alterra has attempted to identify important factors that could cause actual actions, events or results to differ materially from forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate and undue reliance should not be placed on forward-looking information. Except as required by law, Alterra undertakes no obligation to update any forward-looking information to reflect new information, subsequent or otherwise.
SOURCE Alterra Power Corp.
For further information: Peter Lekich, Corporate Communications, Alterra Power Corp., Phone: 604.235.6719, Email: [email protected]; Tom Johnson or Patrick Tucker, 212-371-5999