Starwood Energy Group Global, LLC has announced that an affiliate has completed agreements to finance and construct its second wind farm, a 165 MW project 45 miles south of Lubbock, Texas, USA.
The Stephens Ranch II project, which represents the second of two phases that will total 377 MW, will use GE 1.7-100 turbines and be built by Wanzek Construction, with completion scheduled for mid-2015.
Affiliates of Citi, Morgan Stanley and MUFG have committed to invest tax equity in the project, and affiliates of Starwood Energy Group have committed 100% of the cash equity. Affiliates of Citi, Morgan Stanley and MUFG are also providing a non-recourse construction debt facility (including a letters of credit facility) totaling approximately US$207 million. Affiliates of MUFG will act as Administrative Agent, Collateral Agent, and Depositary Bank.
Himanshu Saxena, Managing Director of Starwood Energy Group, stated:
We are pleased to have assembled a team of very experienced partners for this project. We remain committed to this sector as we continue to look for new investment opportunities. Continued Federal support for wind projects is a key enabler for such investments as the nation transitions to a greener economy.
An investment affiliate of Starwood Energy Group acquired Stephens Ranch in August 2013 from Mesa Power, an entity owned by T. Boone Pickens.
Lance Markowitz, Managing Director of Leasing & Merchant Banking at MUFG, commented:
We are pleased to collaborate with Starwood Energy Group, an important global MUFG client, and are proud to be part of a strong project that will provide clean, competitively priced power to the state of Texas for many years to come. This transaction exemplifies our strategic objective to be the leading financial solutions provider for the renewable energy industry.
Marshal Salant, Global Head of Citi Alternative Energy Finance, stated:
We are proud to support Starwood Energy Group and its efforts to develop and foster renewable energy infrastructure. At Citi, we are committed to financing clean energy and energy efficient projects like Stephens Ranch, which will provide even more families and businesses in Texas with access to alternative energy solutions.