Dec 23 2010
Western Wind Energy has obtained funds to the tune of $275 million and has also secured a commitment for an added $26 million for its 120 MW Windstar project in Tehachapi in California.
The finance comprises some vendor financing, a bridge loan from the US Department of Energy to ITC Cash Grant and a 21 year construction and term loan. All these funds would be utilized for completing the construction of the project.
Out of the total $275 million, $178.5 million were to be supplied by a group of institutional lenders including the Sun Life Assurance Company of Canada (Sunlife), Manufacturers Life Insurance (Manulife) and John Hancock Financial Services at a fixed rate of 7.249% for 21 years. The collateral for the loan are the assets of Windstar Energy and the security of the common shares of Mesa Power while construction work is going on. They have also given a conditional commitment for an added $26 million which would be given before 30th September 2011.
An amount of $55 million is a cash grant bridge provided by Rabobank and at financial close $25 million was drawn out. The balance of $30 million will be supplied by institutional lenders on a pro rata basis with an interest of 5.5% and a fee of 4.0% per year for the undrawn amount. Another vendor would also be lending an amount of $ 15 million at zero interest rates by securing a lien on the cash grant. Apart from the L/C fees and interest, upfront fees of about $5.6 million along with a $4million bonus warrant, which would be changed into one common share of Western Wind for a two year period at a price of $ 1.00 were also given to the lenders.
Source: http://www.westernwindenergy.com/