Lenders on separate construction loans for Airtricity are planning to syndicate more than $800 million in debt meant to fund construction of U.S. wind farms. At the end of the month, BayernLB will launch syndication of $330 million in debt that funds construction of a portfolio of plants referred to as the Dublin-based wind developer's 2006 portfolio and in the first quarter a loan package funding construction of a batch of 2007 wind farms led by BLB, NordLB and HVB Bank will be unfurled.
Ciaran O'Brien, head of financing at Airtricity in Chicago, confirmed the plan but declined to comment further. Bank officials declined to comment.
BLB, Nord/LB and HVB underwrote a $175 million turbine purchase loan that will convert into roughly $500 million in construction financing in the first quarter--about the same point the wind developer expects to have its permits and approvals in place to build some 400 MW at yet unspecified locations in the U.S. The financing is separate from debt obtained by the wind developer for plants in Colorado, New Mexico and Texas (PFR, 4/10). Loan details could not be ascertained.
BLB, NordLB and HVB could syndicate the loan out to just a handful of bankers, an official following the deal says. Officials at the banks either did not return calls or declined to comment.
The structure of the existing debt could not be learned. The underwriters have essentially agreed to replace the $175 million turbine loan with a package of equity bridge debt and letters of credit, noting that a portion of the construction, about $180 million, will be funded via tax equity. Erecting the wind turbines should be completed sometime in 2007.
Although the plants could be sited in the ERCOT region, Airtricity has the flexibility to develop the wind farms at other sites in the Northeast and Midwest, says one banker.
Specifics regarding its $330 million loan could
