Swift Current Energy has secured project financing for an almost 200MW wind project the company is developing in Texas.
The financing will support Swift Current’s 197MW Castle Gap wind project, which is under construction in Mills and Lampasas counties.
The financing was led by MUFG and Caixabank, which both acted as joint coordinating lead arrangers and green loan structuring agents. MUFG also acted as the administrative and collateral agent on the financing. The total size of the debt package could not be learned before press time.
Swift Current is expected to maintain its status as the long-term owner and operator of the project, which is set to come online next year.
This is a change of tune from Swift Current’s previous stance on the project. In June of 2020, Swift Current began marketing the project to potential buyers after mandating Lazard as a financial adviser on a sale process (PFR, 6/2/2020).
At the time, the project was scheduled to come online by the fourth quarter of 2021, but the operations date of the project has been pushed back. Swift initially aimed to offload the project by July 2020.
About 80% of the project's revenue streams are contracted under two separate power purchase agreements with "favorable" pricing and congestion mitigation provisions, while the remaining 20% provides scope to capture merchant upside. The project’s offtakers remain undisclosed.
“As the developer and long-term owner of Castle Gap Wind, Swift Current Energy is pleased to reach this project financing milestone with sophisticated partners who have financed renewable energy projects around the world,” said Eric Lammers, chief executive of Swift Current. “Our leading execution group is advancing this project through construction, and we are on track to start contributing needed energy to the Texas grid by early 2023.”
Vinson & Elkins represented Swift Current Energy in the transaction, whilst Latham & Watkins represented MUFG and CaixaBank.