Full building underway on SunZia Transmission and SunZia Wind, bringing clear energy to three million People and over $20 billion in anticipated financial impacts
Albuquerque, New Mexico, December 27, 2023 – Sample Power Group LP (Sample Power), a pacesetter in renewable power and transmission infrastructure, has closed an $11 billion non-recourse financing and begun full building of SunZia Transmission and SunZia Wind, which collectively is the biggest clear power infrastructure challenge in U.S. historical past.
SunZia Transmission is a 550-mile ±525 kV high-voltage direct present (HVDC) transmission line between central New Mexico and south-central Arizona with the capability to move 3,000 MW of fresh, dependable, and inexpensive electrical energy throughout Western states. SunZia Transmission will ship clear energy generated by Sample Power’s 3,515 MW SunZia Wind facility, the biggest wind challenge within the Western Hemisphere, which is being constructed throughout Torrance, Lincoln, and San Miguel Counties in New Mexico.
This groundbreaking financing consists of an built-in building mortgage and letter of credit score facility, two separate time period services, an working part letter of credit score facility, an revolutionary tax fairness time period mortgage facility and a holding firm mortgage facility.
“Our hope is this successful financing of the largest clean energy infrastructure project in American history serves as an example for other ambitious renewable infrastructure initiatives that are needed to accelerate our transition to a carbon free future,” stated Hunter Armistead, CEO of Sample Power. “We are very grateful to all of our financial partners who are backing SunZia as part of this record-setting project financing. Construction is well underway on this historic project that will deliver clean power with a generation profile that complements abundant solar generation available across the Western United States. We’d specifically like to thank our shareholders for their support of Pattern’s efforts to deliver this critical project and meaningfully advance the world’s energy transition.”
For the roughly $8.8 billion building and time period services, BNP Paribas, Crédit Agricole Company and Funding Financial institution, CoBank, ACB; Desjardins Group, Export Growth Canada, ING Capital LLC, Intesa Sanpaolo S.p.A., New York Department, KFW IPEX-Financial institution, MUFG Financial institution, Ltd., Nationwide Financial institution of Canada, Natixis Company & Funding Banking, Societe Generale, Sumitomo Mitsui Banking Company and Wells Fargo Securities, LLC acted as Preliminary Coordinating Lead Arrangers and Joint Bookrunners. Banco Bilbao Vizcaya Argentaria, The Financial institution of Nova Scotia and Sumitomo Mitsui Belief Financial institution, Restricted, New York Department acted as Coordinating Lead Arrangers.
BNP Paribas, Crédit Agricole Company and Funding Financial institution, MUFG Financial institution, Ltd., Societe Generale, and Sumitomo Mitsui Banking Company are appearing as co-syndication brokers. MUFG Financial institution, Ltd. is appearing as Administrative Agent and Deutsche Financial institution Belief and Company Companies is appearing as collateral and deposit agent for the transaction.
The financings are structured as inexperienced mortgage services in alignment with the Inexperienced Mortgage Rules and BNP Paribas, Crédit Agricole Company and Funding Financial institution, Desjardins Group, ING Capital LLC, Intesa Sanpaolo S.p.A, New York Department, Nationwide Financial institution of Canada, Natixis Company & Funding Banking, Societe Generale, and Sumitomo Mitsui Banking Company, and Wells Fargo Securities, LLC acted as Co-Inexperienced Mortgage Structuring Brokers.
A $2.25 billion tax fairness time period mortgage facility was supplied by Banco Santander, S.A, New York Department and Santander Financial institution N.A. (SBNA) as Joint Coordinating Lead Arrangers. Financial institution of America, GE Vernova’s Monetary Companies enterprise, Natixis Company & Funding Banking and Royal Financial institution of Canada acted as Joint Lead Arrangers. SBNA acted as administrative agent. The ability monetizes challenge tax credit score attributes.
Nomura Securities Worldwide, Inc., and CPPIB Credit score Investments III Inc., a subsidiary of Canada Pension Plan Funding Board (CPP Investments) has participated within the last piece of the financing, a holding firm facility to assist preliminary fairness capital for the challenge.
Skadden, Arps, Slate, Meagher & Flom LLP served as borrower counsel for the Borrower whereas Norton Rose Fulbright US LLP served as senior lenders counsel to the senior services lenders and the holding firm facility lenders and Milbank LLP represented the tax fairness time period mortgage lenders. Holland & Hart LLP and Rodey, Dickason, Sloan, Akin, & Robb, P.A. served as native counsel for the Borrower, and Snell & Wilmer L.L.P. served as native counsel for the lenders.
“SunZia represents an important step forward in the global transition to renewable energy and we are pleased to support Pattern as it works to bring this project toward completion,” stated Invoice Rogers, Managing Director, International Head of Sustainable Energies, CPP Investments. “CPP Investments’ ability to provide a unique combination of flexible capital and deep expertise places us well to support projects like SunZia, which we expect will provide attractive, risk-adjusted returns to the CPP Fund over the long term.”
“We congratulate Hunter and the entire Pattern team on today’s milestone,” stated Yakov Tsveig, Principal of Riverstone Holdings LLC. “The SunZia challenge represents the newest, largest, and most fun a part of the journey we began with administration within the formation of Sample in 2009 and once we made our first joint funding into New Mexico in 2017. We’re grateful for the conviction proven by our quite a few financing companions, serving to unlock important worth and positioning Sample for its subsequent stage of progress.
“This financing is a testament to the commitment of our financing partners to the renewable energy space and to Pattern,” stated Daniel Elkort, Govt Vice President at Sample Power. “The size and scale of both the SunZia project and this multifaceted financing show that the renewable energy space can secure attractive capital at levels previously only seen in traditional generation.”
Development is underway on the SunZia Transmission and Wind challenge in New Mexico
SunZia Wind and Transmission will make use of greater than 2,000 staff on-site throughout building, together with heavy tools operators, electricians, laborers, and others. The challenge may even make the most of the experience of a number of industry-leading suppliers and contractors. The EPC Contractor of the transmission line is Quanta Infrastructure Companies Group and the HVDC provider is Hitachi Power. The EPC contractor for the wind challenge is Blattner Power, a Quanta affiliated firm. The wind generators are being equipped by GE Vernova and Vestas.
SunZia Transmission and Sample Power have partnered with the New Mexico Renewable Power Transmission Authority (RETA) on the event of the transmission challenge in New Mexico.
About Sample Power
Sample Power is among the world’s largest privately-owned builders and operators of wind, photo voltaic, transmission, and power storage tasks. Its operational portfolio consists of 30 renewable power services that use confirmed, best-in-class expertise with an working capability of practically 6,000 MW throughout North America. Sample Power is guided by a long-term dedication to serve prospects, defend the atmosphere, and strengthen communities. For extra data, go to www.patternenergy.com.
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Contact:
Matt Dallas
Sample Power
917-363-1333
[email protected]
