Project Description And Operating Performance Essay

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Project Description & Operating Performance
• Project Description: Parque Eolico El Arrayan SpA (“El Arrayan” or the “Borrower”) is non-recourse, special-purpose entity formed to construct, own and operate a 115 MW wind farm located near Ovalla in the 4th region of Chile. El Arrayan is jointly-owned by Pattern Chile Holdings LLC, a subsidiary of Pattern Energy Group, LP (“Pattern”) (NR) (70%) and Antofagasta Minerals S.A. (“AMSA) (NR) (30%). The Project achieved COD on June 04, 2014 and has a 20-year energy supply agreement with Minera Los Pelambres, S.A. (“MLP” or the “Off-taker”), a subsidiary of AMSA, to sells up to 280,000 MWh annually through the Central Interconnection System (the “SIC”) and is supported by a financial energy hedge agreement (the “Hedge Agreement”) that pays a fixed price of $102.77/MWh (escalating at 1.5% each year-end). The Hedge Agreement accounts for approximately 67% of the annual revenues. The remaining 33% of revenues consists of revenues from the sale of electricity into the SIC wholesale electricity market (18%), capacity revenues (10%), and renewable energy credits and carbon credits (5%).
• Transaction: El Arrayan borrowed $225 million for the construction of the wind farm - $100 million in the secured Term Loan from a group of lenders, including SFS EF AM, and $110 million from Eksport Kredit Fonden of Denmark. Both tranches of loans will mature in March 2029. However, the Term Loan has a $41.8 million balloon at maturity; thereby…

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