Full construction of SunZia Transmission and SunZia Wind is underway and is expected to provide clean power to 3 million Americans and generate more than $20 billion in economic impact
ALBUQUERQUE, N.M., December 27, 2023 – Pattern Energy Group LP (Pattern Energy), a leader in renewable energy and power transmission infrastructure, has closed $11 billion in non-recourse financing to acquire SunZia Transmission and Complete construction of SunZia Wind has begun. is the largest clean energy infrastructure project in U.S. history.
SunZia Transmission is a 550-mile ±525 kV high-voltage direct current (HVDC) transmission line connecting central New Mexico and south-central Arizona, delivering 3,000 MW of clean, reliable, and affordable power to each Western state. has the ability to transport. SunZia Transmission will deliver clean power generated at Pattern Energy’s 3,515 MW SunZia Wind facility, the largest wind project in the Western Hemisphere under construction across Torrance, Lincoln, and San Miguel counties in New Mexico .
This innovative financing includes an integrated construction loan and letter of credit facility, two separate term facilities, an operational letter of credit facility, an innovative tax equity term loan facility, and a holding company loan facility. Masu.
Hunter Armistead, CEO of Pattern Energy, said: “Success in financing the largest clean energy infrastructure project in U.S. history supports other ambitions needed to accelerate the transition to a carbon-free future. We hope that this project will serve as an example of sustainable renewable infrastructure initiatives.” “We are extremely grateful to all of our financial partners for supporting SunZia as part of this record project financing. Construction of this historic project, which will deliver clean, clean electricity, is progressing well. We would like to thank our shareholders for supporting our efforts to make this important project a reality and meaningfully advance the global energy transition. I would like to especially thank you all.”
BNP Paribas, Crédit Agricole Corporate and Investment Bank, Corbank and ACB for approximately $8.8 billion in construction and term facilities; Desjardins Group, Export Development Canada, ING Capital LLC, Intesa Sanpaolo SpA, New York Branch, KFW IPEX Bank, Mitsubishi UFJ Bank, National Bank of Canada, Natixis Corporate & Investment Banking, Societe Generale, Sumitomo Mitsui Banking Corporation, Wells Fargo Securities, LLC were initial investors. Served as co-coordinating arranger and co-bookrunner. Bank of Bilbao Vizcaya Argentaria, Bank of Nova Scotia and Sumitomo Mitsui Trust Bank, New York Branch acted as lead arrangers.
BNP Paribas, Crédit Agricole Corporate and Investment Bank, MUFG Bank, Société Générale and Sumitomo Mitsui Banking Corporation are acting as joint syndicating agents. Mitsubishi UFJ Bank is acting as administrative agent, and Deutsche Bank Trust Agency Services is acting as collateral and deposit agent for the transaction.
The financing is supported by Green Lending Principles and BNP Paribas, Crédit Agricole Corporate and Investment Bank, Desjardins Group, ING Capital LLC, Intesa Sanpaolo SpA, New York Branch, National Bank of Canada, Natixis Corporate & Investment It is structured as a green loan system in line with the following. Société Générale, Sumitomo Mitsui Banking Corporation, and Wells Fargo Securities LLC served as joint green loan structuring agents.
The $2.25 billion tax equity term loan facility was provided by Banco Santander SA New York Branch and Banco Santander NA (SBNA) as joint lead arrangers. Bank of America, GE Vernova’s financial services business, Natixis Corporate & Investment Banking and Royal Bank of Canada acted as joint lead arrangers. SBNA acted as the managing agent. This feature monetizes a project’s tax credit attributes.
Nomura Securities International Inc. and CPPIB Credit Investments III Inc., a subsidiary of Canada Pension Plan Investments Board (CPP Investments), are a holding company structure to support the initial equity capital of the project. Participated in the part.
Skadden, Arps, Slate, Meagher & Flom LLP served as debtor counsel for the Borrower, Norton Rose Fulbright US LLP served as Senior Lender Counsel for the Senior Facility Lender and Holding Company Facility Lender, and Milbank LLP served as tax equity counsel for the Borrower. Represented term loan lender. Holland & Hart LLP and Rodey, Dickason, Sloan, Akin, & Robb, PA served as local counsel for the borrower and Snell & Wilmer LLP served as local counsel for the lender.
“SunZia represents an important step in the global transition to renewable energy and we are pleased to support Pattern as we work towards completion of this project,” said CPP Investments Managing Director and Sustainable Energy Global Head Bill Rogers said. “CPP Investments’ ability to provide a unique combination of flexible capital and deep expertise allows us to support projects like SunZia, delivering attractive risk-adjusted returns to CPP funds over the long term. I hope it will bring.”
“We congratulate Hunter and the entire Pattern team on today’s milestone,” said Yakov Zweig, President of Riverstone Holdings LLC. “The SunZia project represents the latest, largest and most exciting part of the journey we began with our management team when we founded Pattern in 2009 and made our first co-investment in New Mexico in 2017. We are grateful for the belief we have shown. ” Our numerous funding partners will help us unlock significant value and position Pattern for the next stage of growth.
“This financing is a testament to our financing partners’ commitment to the renewable energy sector and Pattern,” said Daniel Elcourt, Executive Vice President, Pattern Energy. “The size and scale of both the SunZia project and this multi-faceted financing demonstrate that the renewable energy sector can secure attractive capital at levels previously only seen in conventional power generation.”
Construction underway on SunZia transmission and wind project in New Mexico
SunZia Wind and Transmission will employ more than 2,000 workers on site during construction, including heavy equipment operators, electricians, laborers and more. The project will also leverage the expertise of several industry-leading suppliers and contractors. The EPC contractor for the transmission line is Quanta Infrastructure Services Group and the HVDC supplier is Hitachi Energy. The EPC contractor for the wind project is Blattner Energy, an affiliate of Quanta. The wind turbines are supplied by GE Vernova and Vestas.
SunZia Transmission and Pattern Energy has partnered with the New Mexico Renewable Energy Transmission Authority (RETA) to develop transmission projects in New Mexico.
About pattern energy
Pattern Energy is one of the world’s largest private developers and operators of wind, solar, transmission and energy storage projects. The company’s operating portfolio includes 30 renewable energy facilities using proven, best-in-class technology, with approximately 6,000 MW of operating capacity across North America. Pattern Energy is guided by a long-term commitment to serving our customers, protecting the environment, and strengthening our communities. For more information, please visit www.patternenergy.com.
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contact:
matt dallas
pattern energy
917-363-1333
(email protected)
