Atlantic Power Corp. purchased an additional 48 percent interest in the 300 MW capacity Canadian Hills wind power project in Oklahoma. With the additional interest, APC now has a 99 percent stake in the wind farm.
APC also closed on a $310 million non-recourse, project-level construction financing facility for the $470 million project, for which Morgan Stanley serves as sole lead arranger. The financing includes a $290 million construction loan and a $20 million five-year letter of credit facility.
The construction loan is structured to be repaid by a tax equity investment when the project begins commercial operations. APC said it will invest approximately $180 million of equity (net of financing costs) following the funding of the construction financing.
The project was developed by Apex Wind Energy Holdings LLC, which will keep a 1 percent interest in the wind farm. Apex will manage construction of the project and APC will oversee operations and be the asset manager. The wind farm will use Mitsubishi 2.4 MW MWT102 and REpower 2.05 MW MM92 wind turbines.
Construction is expected to begin immediately and is scheduled for completion by November 2012. Southwestern Electric Power Co., Oklahoma Municipal Power Authority, and the Grand River Dam Authority have all signed power purchase agreements for all of the output from the project.
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