Western Wind arranges financing, working on loans
Ticker Symbol: C:WND
Western Wind arranges financing, working on loans
Western Wind Energy Corp (C:WND)
Shares Issued 52,600,552
Last Close 11/12/2010 $1.01
Sunday November 14 2010 - News Release
Mr. Jeffrey Ciachurski reports
WINDSTAR UPDATE
Western Wind Energy Corp. is nearing the completion of over 100 loan documents with its lenders for the Windstar project financing. In particular, the intercreditor agreement between the four primary lenders has required over 30 days of negotiation but the key issues between the lending parties have now been resolved. Subject to financial close, which is expected to be in the very near term, the total debt financing from the four lenders will be approximately $264-million and will represent approximately 92 per cent of the projected $290-million project cost. The total project costs are now higher than previous estimates because the cost of the land is now included in the project. The financing balance of $26-million is primarily represented by Western Wind's historical equity investment in the project including the cost of the land and fully allocated Western Wind development expenses since 2002. The most recent version of the pro forma financial model being reviewed by the lenders' independent engineer is projecting earnings before interest, taxes, depreciation and amortization (EBITDA) of over $30-million per year over a 20-year period.
The additional time needed to address intercreditor issues and complete the legal documentation has increased the projected transaction costs beyond initial estimates and consequently the company is planning a non-brokered private placement of approximately 800,000 common shares at $1.00 per share.
The fully completed commercial operations date for the Windstar project is now anticipated to be the fourth quarter of 2011. Western Wind has completed all interconnection, transmission and power purchase agreements, zoning and other land use permitting, and detailed micro-siting of turbines and associated electrical facilities. In addition, much of the final detailed design engineering has been completed and routine construction permitting has begun in anticipation of starting construction. The long lead items will be ordered and construction will begin immediately upon financial close.
? 2010 Canjex Publishing Ltd.