Longroad Energy has Texas windfarm funding in place, looking at possible sale
By Rebecca Howard
June 1 (BusinessDesk) - Longroad Energy, a renewable energy project developer jointly owned by Infratil and the New Zealand Superannuation Fund, has funding in place to build a US$300 million wind project in Texas and is evaluating the long-term ownership options of the project.
Earlier this week Boston-based Longroad said it had closed financing for the 237.6 megawatt Rio Bravo wind farm project in Starr County, Texas. Longroad, which is 45 percent owned by Infratil, 45 percent owned by the New Zealand Superannuation Fund and 10 percent owned by management, is investing approximately US$100 million as sponsor and a subsidiary of Berkshire Hathaway Energy is providing the balance of the permanent financing.
"We are pleased to have taken Rio Bravo across the finish line to financing and construction and we look forward to the project coming on line next year," said Longroad Energy chief executive Paul Gaynor in a statement that was published on the New Zealand Stock exchange yesterday. The project is slated to come online in June 2019.
Construction financing is led by KeyBanc Capital Markets as coordinating lead arranger, and HSBC, Canadian Imperial Bank of Commerce, Zions Bank, and National Australia Bank as joint lead arrangers. The project has entered a 15-year energy hedge with Citigroup Energy Inc.
Longroad also said it is evaluating the long-term ownership options and has retained KeyBanc Capital Markets to explore a potential sale.
Infratil's shares, which are trading ex-dividend, recently fell 3.8 percent to $3.30, having gained 3.3 percent so far this year.