Apex Clean Energy, an independent renewable energy company, is pleased to announce it has reached financial close of a $397 million construction loan for the 299 MW Kay Wind Project in Kay County, Oklahoma.
Bayerische Landesbank, New York Branch and Rabobank, New York Branch acted as the Joint Lead Arrangers, Coordinating Lead Arrangers and Joint Bookrunners for the transaction. Additionally, Canadian Imperial Bank of Commerce, New York Branch, Commerzbank AG, New York Branch, KeyBank National Association, and Siemens Financial Services, Inc. acted as Joint Lead Arrangers. Rabobank is the Administrative Agent, Collateral Agent and LC Issuing Bank.
"We appreciate the dedication, creativity and financial strength that BayernLB, Rabobank, and the rest of the bank groups have brought to these transactions," said Mark Goodwin, President of Apex Clean Energy. "The participation of these global institutions is a key to the success of the project, which will save local power consumers millions over its lifetime and use no water, conserving about 7.92 million gallons of water per day when compared to what a conventional power plant would use to generate the same amount of energy." Westar and Grand River Dam Authority (GRDA), the purchasers of the power from the project, will have the ability to resell the renewable energy purchased to third parties.
The company believes that Kay Wind is expected to generate about $2.3 million per year in tax revenues for local counties and school districts, $2 million per year in royalty payments to local landowners, 150 local jobs during construction, and more than a dozen high-quality long term jobs throughout operations.
Apex Clean Energy secured long-term power purchase agreements with Westar Energy and GRDA for Kay Wind, which will utilize 130 Siemens (NYSE: SI) 2.3-MW turbines. Westar Energy is based in Topeka, Kansas and GRDA is based in Vinita, Oklahoma. Upon completion, Southern Company (NYSE: SO) subsidiary Southern Power expects to acquire the project from Apex. Apex will provide comprehensive asset management services led by an on-site operations team and supported by Apex's remote operations control center located in Charlottesville, Virginia.
"Rabobank is pleased to be supporting Apex in this important transaction with Southern, especially as it represents a step forward in their strategy to not only develop, but also finance and own, large wind energy projects," said Tom Emmons, Head of US Project Finance of Rabobank.
"We are pleased to support Apex and Siemens, important BayernLB partners, by financing the construction of the Kay Wind project, which will provide competitively priced power to Oklahoma and the region," said Alexander von Dobschutz, Global Head of Structured & Trade Finance at BayernLB.