Western Spirit FinCo LLC

Western Spirit Project Portfolio - Financing

Industry
Power/Onshore wind
Area of finance
Project & Infrastructure Finance
Country
United States

Deal Overview

Western Spirit transaction is Pattern Energy Group LP’s development and construction of the 350 MW Red Cloud Wind Project, 324 MW Clines Corners Wind Farm, 272 MW Tecolote Wind Project, and 105 MW Duran Mesa Wind Project (collectively the “Western Spirit Wind Projects”) and a new...

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Western Spirit transaction is Pattern Energy Group LP’s development and construction of the 350 MW Red Cloud Wind Project, 324 MW Clines Corners Wind Farm, 272 MW Tecolote Wind Project, and 105 MW Duran Mesa Wind Project (collectively the “Western Spirit Wind Projects”) and a new 150-mile 345kV single circuit alternating current transmission line (the “WST-Line”) in New Mexico.

The 377-turbine Western Spirit Wind project will add 1,050MW of capacity and, according to Pattern, is the largest single-phase renewable power build out in the US. It's the largest project in New Mexico and will create more than 1,000 construction jobs. The 150 mile, 345kV AC Western Spirit Transmission Line is being developed jointly with the New Mexico Renewable Energy Transmission Authority (RETA). It will interconnect directly into the Public Service Company of New Mexico system (PNM), and be acquired and operated by PNM upon completion. The projects are targeted for commercial operation by the end of 2021. 

This is one of the largest single-phase Wind and T-Line project ever financed in the Western Hemisphere, and complex greenfield financing involving multiple beneficiaries and offtakers. Lenders worked closely in partnership with the Financial Advisor and Sponsor to include credit enhancements and structural mechanics that were mutually beneficial. 

It's a solid financing structure with 95% maximum leverage covenant during construction, with equity to be funded upfront by Pattern on or prior to Closing Date.

Lender Comforts/Credit Positives:

  • The project will employ the latest wind turbine technology manufactured by GE, the GE 2.82-127 and 2.3-116 turbines. GE is one of the world’s largest manufacturers of wind turbines with proven engineering, manufacturing, and field service capabilities. The project will also benefit from its TSA with GE as well as O&M services managed by Pattern, similar to other Pattern-sponsored wind projects.
  • Strong sponsorship from Pattern, one of the largest and most experienced private renewable energy companies in the world and backed by CPPIB and Riverstone.
  • The wind farms will be constructed by Blattner Energy, Inc, the most experienced North American wind EPC contractor. The Transmission Line will be constructed by EC Sources Services, an industry leading turnkey provider of Extra High Voltage transmission line construction.


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Deal Volume
$ 2.22bn
Financial Close
04 January 2021
Sources
Proximo article, Proximo article, Press release, Submitted by participant(s)

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Projects

350 MW Red Cloud Wind Project

Greenfield
Onshore wind
United States
$ 571.2m

324 MW Clines Corners Wind Farm

Greenfield
Onshore wind
United States
$ 571.2m

105 MW Duran Mesa Wind Project

Greenfield
Onshore wind
United States
$ 571.2m