Vancouver renewable energy company Alterra Power Corp (TSX: AXY) has agreed to share ownership of the 200 megawatt Flat Top wind project with BlackRock Real Assets, an affiliate of U.S. investment manager Blackrock Inc. BlackRock Real Assets acquired a 49 percent sponsor-partner interest in the project. No financial terms were released. Alterra acquired the central Texas asset in 2016, placing a US$1.6 million security deposit with the local transmission provider. The company is undertaking construction of the project, which is expected to be in operation by the first half of 2018.
Alterra Power Completes Financing and Partnership for Flat Top Project
VANCOUVER, July 20, 2017 /CNW/ – Alterra Power Corp. (“Alterra”) is pleased to announce the completion of financing for the 200 MW Flat Top wind project and the concurrent advancement of the project into the final phase of construction. Key components of the financing include:
Sponsor-Partner Investment: A fund managed by BlackRock Real Assets has acquired a 49% sponsor-partner interest in the project, and will co-own the project with Alterra. Alterra will continue to own 51% of the sponsor equity.
$287 Million Construction Loan Facility: Affiliates of Citi, Santander and the Royal Bank of Canada supplied the facility, consisting of a $217 million loan plus letters of credit totaling $71 million (all amounts USD). The facility is secured by project assets and supported by a tax equity investor commitment.
$221 Million Commitment from Tax Equity Partners: Subsidiaries of Berkshire Hathaway Energy and Citi have committed to a $221 million investment which will be realized when the project achieves commercial operations, subject to typical conditions precedent. The tax equity investment will retire the construction loan facility.
$21 Million Expansion of Holding Company Loan: Alterra has satisfied the final conditions precedent to funding of its expanded loan facility with affiliates of AMP Capital Investors Limited. The proceeds ($21.1 million, gross) funded a portion of Alterra’s sponsor equity contribution for the project.
“We’re extremely pleased to have our Shannon financing partners join us again at Flat Top, and to welcome a strong, new partner in BlackRock,” said John Carson, Alterra’s CEO. “We anticipate that the Flat Top project will serve our stakeholders and the State of Texas well, delivering a large amount of clean power into a lesser served portion of the state for years to come.”
The 200 MW Flat Top project, located in central Texas is contracted to sell the majority of its power under a 13-year power hedge with an affiliate of Citi. Blattner Energy, Inc. is already mobilized on site and will provide services for the primary construction phase, while an affiliate of Vestas-American Wind Technology, Inc. is supplying the project’s wind turbines. The project is expected to achieve commercial operations in the first half of 2018. Alterra originally acquired the Flat Top wind project from Pioneer Green Energy, LLC and Lavaca Wind, LLC, each of whom have extensive experience in the development of several wind projects that are currently operating.
About Alterra Power Corp.
Alterra Power Corp. is a global renewable energy company that manages eight power plants totaling 825 MW of hydro, wind, geothermal and solar generation capacity in Canada, the USA and Iceland. Alterra owns a 363 MW share of this capacity, generating over 1,500 GWh of clean power annually.
Alterra is also constructing the 200 MW Flat Top wind project in central Texas, which is expected to be in operation by 1H 2018 (51% owned by Alterra). Upon the completion of Flat Top, Alterra will operate nine power plants totaling 1,025 MW of capacity and will own a 465 MW share of this capacity, generating almost 2,000 GWh of clean power annually. Alterra also has an extensive portfolio of development projects and a skilled team of developers, builders and operators to support its growth plans.
Alterra trades on the Toronto Stock Exchange under the symbol AXY.
Peter Lekich, Corporate Communications, Alterra Power Corp., 604-235-6719, firstname.lastname@example.org
Photo courtesy of pedrosala/iStock/Getty Images