Leeward Renewable Energy Closes Financing for the Aragonne Repower and Aragonne Mesa Wind Projects

By: Leeward Renewable Energy, LLC via Business Wire

July 08, 2021 at 09:00 AM EDT

Projects to supply renewable energy to Arizona Public Service Company for 20 years

Leeward Renewable Energy, LLC (Leeward) today announced that it has closed construction financing and secured tax equity commitments for the repowering of Leeward’s 90 megawatt (MW) Aragonne Wind project (Aragonne Repower) and the construction of the new 145 MW Aragonne Mesa Wind project (Aragonne Mesa). Wells Fargo served as coordination lead arranger, administrative agent and collateral agent on the $262 million financing, which included a construction plus five-year term loan, tax equity bridge loan and a letter of credit facility. Santander served as a joint lead arranger.

Under a previously announced power purchase agreement (PPA) with Arizona Public Service Company (APS), the projects, which will use advanced GE wind turbine technology, will provide a combined 200 MW of wind power generation to APS over a 20-year period. The Aragonne Repower and Aragonne Mesa projects, both located in Guadalupe County, New Mexico, will help APS achieve its goal of delivering 100% clean, carbon-free electricity to its customers by 2050.

“We are excited to have completed the financings for our Aragonne projects in partnership with Wells Fargo and Santander – two well-respected leaders in the renewable financial community,” commented Chris Loehr, Chief Financial Officer at Leeward. “We are grateful to Wells Fargo and Santander for their partnership and investment as Leeward continues to modernize and expand our fleet of projects and deliver clean, renewable energy to our customers.”

“Wells Fargo is proud to be a part of the Aragonne projects, which are important projects that help our communities accelerate the transition to a lower carbon economy,” said Alok Garg, head of Renewables and Asset Finance, Corporate & Investment Banking at Wells Fargo. “We value our comprehensive and multi-faceted relationship with Leeward, a company committed to providing long term reliable renewable energy solutions to its customers.”

“We’re pleased to be able to provide multiple funding solutions – including tax equity financing – to meet Leeward’s needs for this substantial wind project expansion and repowering effort,” said Sam Buechner, director for Wells Fargo Renewable Energy & Environmental Finance. “Wells Fargo is committed to helping our customers succeed during this crucial time of change in the energy economy.”

Construction of the Aragonne Repower and Aragonne Mesa projects has already commenced and is expected to be completed by December 2021.

About Leeward Renewable Energy, LLC

Leeward Renewable Energy is a leading renewable energy company that owns and operates a portfolio of 21 renewable energy facilities across nine states totaling approximately 2,000 megawatts of generating capacity. Leeward is actively developing new wind, solar, and energy storage projects in energy markets across the U.S., with 17 gigawatts under development spanning over 100 projects. Leeward is a portfolio company of OMERS Infrastructure, an investment arm of OMERS, one of Canada’s largest defined benefit pension plans with C$105 billion in net assets (as at December 31, 2020). For more information, visit www.leewardenergy.com.