Toronto (February 10, 2020) Potentia Renewables Inc. (Potentia) announced the closing of a $254 millionnon-recourse construction and term hybrid financing for its Golden South Wind Energy Facility (the Project) currently under construction in Saskatchewan, Canada.
Jeff Jenner, Chief Executive Officer of Potentia, stated: “We are very pleased to have closed the financing for Golden South, which provides for fixed-rate debt at very attractive rates and a term closely matching the project’s 25 year power purchase agreement. The project’s construction is underway with 15 foundations completed in advance of turbine deliveries this summer”.
The $254 million financing has been arranged by National Bank Financial Markets (National Bank), as sole book runner. It comprises two facilities, or tranches:
- A $55 million floating-rate construction loan which will convert into a 7-year term loan following commercial operations, provided by National Bank of Canada
- A $199 million fixed-rate construction loan which will convert into a 24.5-year term loan following commercial operations, with the principal beginning to amortize after the maturity of the 7-year term loan
Osler, Hoskin & Harcourt LLP acted as legal counsel to Potentia during the transaction, with McCarthy Ttrault LLP acting on behalf of the lenders.
The Project is a significant renewable energy infrastructure investment that consists of 50 Goldwind permanent-magnet direct-drive wind turbines and is located approximately 140 km southwest of Regina and 150 km southeast of Swift Current. The Project was the successful proponent of the 2018 SaskPower request for proposals and has executed a 200 MW, 25-year power purchase agreement with SaskPower to supply both energy and environmental credits. It is expected to come into commercial operation by Q1 2021.