Refinancing agreed for Wattle Point wind farm in Australia

Herbert Smith Freehills has announced it has advised Wattle Point Wind Farm Pty Ltd (WPWF) on the refinancing of the 91MW Wattle Point wind farm project.

WPWF is wholly owned by the ANZ Specialist Asset Management Limited as trustee of the Energy Infrastructure Trust and managed by Infrastructure Capital Group (ICG).

ANZ’s Energy Infrastructure Trust purchased the Wattle Point Wind Farm from Alinta Limited for $225 million in April 2007.

The Wattle Point Wind Farm was acquired by Alinta as part of the merger of Alinta and AGL’s infrastructure assets in October 2006. Wattle Point commenced operations in June 2005.

Wattle Point wind farm is located near Edithburgh on South Australia’s Yorke Peninsula and has the benefit of a long term capacity based offtake and asset management arrangement with AGL Hydro Pty Ltd. The wind farm project is part of the Energy Infrastructure Trust’s portfolio of energy-related utility and infrastructure assets in Australia and New Zealand.

This transaction involved the arrangement of A$161 million in 5 year and 10 year maturity project finance debt through the participation of Commonwealth Bank of Australia, Sumitomo Mitsui Banking Corporation and investors managed by US fund manager Babson Capital LCC, and the consequential restructure of pre-existing financing arrangements.

The Herbert Smith Freehills team advising WPWF was led by partner Gerard Pike with support from senior associates Miles Wadley and Cameron Watson and solicitor Celine Yim.

Gerard Pike commented that:

“Herbert Smith Freehills is delighted to have assisted WPWF and ICG in achieving financial close for the refinancing of the Wattle Point wind farm which has closed in a favourable debt market for borrowers with long term contracted energy assets in Australia."