Starwood Energy Group Global, LLC, a private investment firm focused on infrastructure, said Jan. 7 that it has completed deal to finance and build a 211-MW wind power project 45 miles south of Lubbock, Texas.
The Stephens Ranch project will be the first wind energy facility developed by Starwood, which has developed many power projects previously.
Stephens Ranch will be built in two phases that will total 377 MW. The project will use General Electric (NYSE:GE) turbines and be built by Wanzek Construction, with completion scheduled for late 2014.
An investment affiliate of Starwood Energy Group acquired Stephens Ranch in August 2013 from Mesa Power Group, an entity owned by T. Boone Pickens. Mesa Power announced plans for the wind project in early 2012, and it has previously been referred to as the Stephens Bor-Lynn Wind Project (SBL),
The wind project is said to be located in both Borden and Lynn Counties and evidently has a transmission interconnection agreement in place.
Affiliates of GE Energy Financial Services, Banco Santander and Citi have committed to invest tax equity in the project, and affiliates of Starwood Energy Group have committed 100% of the cash equity. Santander Bank, N.A. and Citi are also providing a non-recourse construction debt facility (including a letters of credit facility) totaling approximately $265m. Additional financial details were not disclosed.
“For our first wind investment, we are pleased to have assembled a strong team of very experienced lenders, tax equity investors and contractors,” said Himanshu Saxena, Managing Director of Starwood Energy Group. “We look forward to working together with the local communities to make this project a success.”
In September 2013, Starwood announced the sale of its 120-MW Starwood-Midway peaking plant in California to affiliates of Carlyle Infrastructure Partners.
Starwood Capital Group Global, also announced Jan. 7 the final closing of Starwood Energy Group’s blind-pool, discretionary funds collectively referred to as Starwood Energy Infrastructure Fund II (SEIF II), with total capital commitments of $983m.