Private placement to finance Australian wind farm
Infrastructure Capital Group (ICG) has announced that 71 MW Hallett Hill 2 wind farm has launched a A$205 million issue in the US Private Placement (USPP) market.
The USPP issuance comprises two 12?year tranches of notes for US$99 million and A$76 million. As part of the transaction, cross currency swaps were entered into to convert the $US notes into $A. The issue was oversubscribed.
Funds from the USPP issuance will be used to refinance Hallett Hill’s current senior debt facility. Funding will occur on 27 May 2015.
Hallett Hill is a 71 MW, 34 turbine, wind farm located in mid?north South Australia near the township of Mt Bryan. The wind farm has been operational since 2009. Hallett Hill is wholly owned by the Energy Infrastructure Trust (EIT) which is managed by ICG. It is backed by 25?year Offtake and Asset Management Deeds with AGL Hydro whose obligations are guaranteed by its parent AGL Energy.
The transaction represents a significant milestone for the renewable energy market with Hallett Hill being the first Australian wind farm to issue in the USPP market. Executive Director of ICG and Director of Hallett Hill, Craig Whalen, noted:
“The issue demonstrates there is strong appetite from US investors for well?structured transactions backed by a strong counterparty such as AGL Energy. The 12?year debt issue provides a long?term funding solution for Hallett Hill wind farm which materially de?risks our investment. We are delighted with the outcome.”
ICG acted as financial and ratings advisor to Hallett Hill. BNP Paribas and National Australia Bank Limited were the Joint Placement Agents. Allens and Sidley Austin provided legal advice to the issuer, Herbert Smith Freehills and Chapman & Cutler provided legal advice to the noteholders and Chatham Financial provided hedging advice to the issuer.
The USPP issue for Hallett Hill follows the successful refinancing of Wattle Point Wind Farm (which is also wholly owned by EIT) in November 2014 by ICG which also included a long term tranche provided by US investors.
Country news
-
-
March 31, 2015
EnergyAustralia sells minority interest in Waterloo wind farm
EnergyAustralia has agreed to sell its remaining 25 per cent equity interest in the 111 MW Waterloo Wind Farm, and the development rights to the Waterloo expansion project, to Palisade Investment Partners and Northleaf Capital Partners. Read more -
April 10, 2015
Four teams shortlisted for Northern Territory gas pipeline
Northern Territory has shortlisted four teams for the development of a gas pipeline connecting the Northern Territory to the East Coast of Australia. Read more -
April 20, 2015
Banco Santander to quit Taralga wind farm in Australia
According to sources, Banco Santander is trying to sell its 90 per cent stake in the Australian 106.8 megawatt (MW) Taralga wind farm near Goulburn. Read more -
April 30, 2015
Windlab achieves Financial Close on Coonooer Bridge Wind Farm in Victoria, Australia
Windlab Limited has achieved financil close for the 20 MW Coonooer Bridge Wind Farm (CBWF) in Vicotria, Australia Read more -
May 07, 2015
Herbert Smith Freehills appoints Graeme Gamble as a partner
Herbert Smith Freehills (HSF) has boosted its Asia Pacific practice with the appointment of Graeme Gamble as a partner in its global energy group. Read more
