Financing secured for Prevailing Wind Park in South Dakota
SALT LAKE CITY–(BUSINESS WIRE)–sPower, a leading renewable energy Independent Power Producer (IPP), today announced that the company closed on the debt financing and tax equity commitment for Prevailing Wind Park, in Bon Homme, Charles Mix and Hutchinson Counties 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.
“sPower is very pleased to announce the concurrent closing of the construction debt, term debt and tax equity on this 218 MW wind project. This is a first for us in the wind finance space and continues to demonstrate sPower’s position as the industry leader in renewable energy finance,” said Brian Callaway, Vice President of Structured Finance and M&A at sPower.
“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. 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,” said David Shipley, Chief Financial Officer at sPower.
”CIBC is pleased to have partnered with sPower to lead the financing on this groundbreaking project,” said Susan Rimmer, Managing Director and Head, CIBC Global Corporate Banking. “The ability to execute such a landmark project speaks to sPower’s capabilities as a leading renewables developer. We look forward to partnering with and supporting sPower’s continued expansion in the US renewable energy industry.”
“HSBC is doing our part in the world’s transition to a low carbon economy by offering innovative solutions such as this structured finance transaction for sPower,” said James Wright, Managing Director and Head of Power, Utilities and Renewables at HSBC Bank USA. “By supporting the Prevailing Wind Park project, we are financing a sustainable future.”
The 218 MW wind farm represents sPower’s largest project to-date and is the largest single asset financing in the company’s history.
The electricity generated by Prevailing Wind Park will be sold to a utility under a 30-year Power Purchase Agreement. The expected electricity generated at full capacity is enough to meet the consumption of up to 90,000 average South Dakota homes.
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 one of the fastest-growing utility-scale renewable energy companies in the United States. sPower owns and operates more than 155 utility and commercial distribution electrical generation systems and has a portfolio of solar and wind assets exceeding 13.0 GW between operation, construction and development. As a vertically integrated platform, with technology neutrality, sPower develops projects at the lowest cost; funds projects from development through operations; and provides access to a mature, highly viable pipeline of projects. sPower is owned by a joint venture partnership between The AES Corporation (NYSE: AES), and the Alberta Investment Management Corporation.
sPower provides renewable energy for a sustainable future. For more information, visit www.spower.com.