Terra-Gen secures $394m for Californian wind project

March 18, 2010

New York-based Terra-Gen Power LLC has secured $394 million in financing for a 150-megawatt wind project in California.

The Alta Wind I project is the initial phase in a 3,000MW initiative between the towns of Mojave and Tehachapi, south-east of Bakersfield, which is one of the largest wind development projects in the US.

The initial phase will comprise 100 turbines, using 1.5MW SLE machines supplied by GE.

Alta Wind I is to be built by a joint venture between Wind Energy Constructors and Balfour Beatty, and is expected to begin generating power in early 2011.
Terra-Gen, which is owned by energy investors ArcLight Capital Partners, LLC, and infrastructure investors Global Infrastructure Partners has a 1,550-megawatt power purchase agreement to sell power from Alta Wind to utility Southern California Edison.

The company already owns and operates seven wind projects, totaling 617 turbines, in the Tehachapi/Mojave area.

Financing

The Alta Wind I project’s financing includes a seven-year construction and term loan, as well as a bridge loan until the developer gains a cash grant from the US Department of Energy.

It will allow pre-construction loans to be paid off and construction on the project completed, Terra Gen said today.

Credit Agricole and Natixis, New York Branch acted as co-bookrunners and co-structuring leads for the financing. Lenders also included Union Bank, Prudential Investment Management, Cooperatieve Centrale Raiffeisen-Boerenleenbank, and Banco Santander.