September 23 (Renewables Now) - US solar and wind power producer sPower has finalised a USD-508-million (EUR 461m) debt and tax equity financing deal for the construction of its 218-MW Prevailing wind project in South Dakota, it said on Friday.
As part of the financing round, sPower has secured about USD 319 million in construction and term debt from HSBC (NYSE:HSBC) and the Canadian Imperial Bank of Commerce (TSE:CM), better known as CIBC. Separately, it has received a USD-189-million tax equity commitment from Bank of America Merrill Lynch.
To be installed in Bon Homme, Charles Mix and Hutchinson Counties, the Prevailing power plant will be sPower’s largest project so far. Once operational, its output will be sold to an unnamed utility under a 30-year power purchase agreement (PPA). sPower expects the generated electricity to be enough to meet the demand of up to 90,000 average local households.
CohnReznick Capital was sPower’s financial advisor in the funding transaction, while law firm McDermott Will & Emery provided legal counsel.
(USD 1.0 = EUR 0.907)