US private equity firm Starwood Energy has signed financing agreements with GE, Citibank and Santander necessary for the development of a 211MW wind farm plant in Texas.
GE Energy Financial Services's affiliates, Santander and Citi, have agreed to invest tax equity in the Stephens Ranch plant, and Starwood Energy's affiliates will commit 100% of the cash equity.
Santander Bank and Citi will also provide a non-recourse construction debt facility including a letter of credit facility, a total worth of approximately $265m.
Located in both Borden and Lynn counties, around 45 miles south-east of Lubbock, the latest plant, which represents the first phase of the two-phase project with a total capacity of 377MW, will feature GE 1.7-100 turbines with completion set for late 2014.
To be built by Wanzek Construction, the plant was acquired by an investment affiliate of Starwood Energy from Mesa Power, owned by T. Boone Pickens, in August 2013. JP Morgan Securities has acted as exclusive financial advisor to Mesa Power in the transaction.
The entire project will be connected to the 345kV bus at Wind Energy Transmission Texas (WETT) Long Draw Switching Station in Borden County as part of an interconnection agreement signed in March 2012.
Starwood Energy managing director Himanshu Saxena said, "For our first wind investment, we are pleased to have assembled a strong team of very experienced lenders, tax equity investors and contractors. We look forward to working together with the local communities to make this project a success."
GE Energy Financial Services managing director Kevin Walsh said, "This transaction enabled us to combine our Texas wind energy investing expertise with the skills of our tax equity partners, Santander and Citi, to support Starwood Energy on this wind farm, a well-structured project using proven technology."
Image: Stephens Ranch wind project will feature GE turbines. Photo: courtesy of General Electric Company.