Financial services firm Fortis Merchant Banking has successfully closed the syndication of $280 million senior secured financing for the Sherbino-I wind farm, a joint venture project owned by BP Alternative Energy North America and NRG Energy.
Fortis Merchant Banking structured and underwrote the senior secured financing that consists of a construction loan of $280 million, which will convert into a 15-year term loan in the amount of $140 million at the commercial operation date.
The financing is accompanied by a long-term, fixed price gas hedge provided by Fortis Energy Marketing and Trading. The hedge was designed to accommodate wind intermittency risk and provides the Sherbino-I wind farm with greater revenue stability for the term of the hedge.
The Sherbino-I wind farm, currently under construction, is a 150MW project that consists of 50 Vestas V90 turbines, located in Pecos County, Texas.