sPower closed on the debt financing and tax equity commitment for Prevailing Wind Park based in in South Dakota. HSBC and CIBC are lenders for the approximately $319 million construction/term facility.
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.
”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.”
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.