Alterra Power Completes Financing and Partnership for Flat Top Project
- Jul 20, 2017 8:38 pm GMT
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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 MillionConstruction Loan Facility: Affiliates of Citi, Santander and the Royal Bank of Canada supplied the facility, consisting of a $217 millionloan 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 MillionCommitment from Tax Equity Partners: Subsidiaries of Berkshire Hathaway Energyand Citi have committed to a $221 millioninvestment 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 MillionExpansion 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
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.
Alterra is also constructing the 200 MW Flat Top wind project in central
Alterra trades on the
Cautionary Note Regarding Forward-Looking Information
Certain statements and information included in this news release are "forward-looking information" within the meaning of applicable securities laws that involve risks and uncertainties. Forward-looking information relates to future events or future performance and reflects management's expectations and beliefs regarding future events as of the date hereof. Examples of forward-looking information in this news release include the successful construction of, and achievement of commercial operations for, the Flat Top project, satisfaction of conditions precedent to the tax equity investment and Alterra's projected generation. Forward-looking information is based on factors or assumptions that were applied in drawing a conclusion or making a forecast or projection. Since forward-looking information relates to future events and conditions, by its very nature it requires making assumptions and involves inherent risks and uncertainties. Alterra cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking information. Material risk factors and assumptions include whether the actual power generation from our operations meets our expectations; the success and timely completion of construction efforts at the Flat Top project; achievement of commercial operations at the Flat Top project; Alterra's ability to successfully satisfy the conditions precedent to the tax equity investment; as well as others set out in the management's discussion and analysis section of Alterra's most recent annual and quarterly reports and in Alterra's Annual Information Form for the year ended