Summary
NextEra Energy Inc. (NEE) announced on December 27, 2011, that its indirect wholly-owned subsidiary, Redwood Trails Wind, LLC, secured approximately $234 million in a limited-recourse senior secured variable rate term loan. This financing, which matures in December 2029, will be used to reimburse NextEra Energy Resources for capital contributions towards the development and construction of two wind generation facilities totaling approximately 237 megawatts in California and Oklahoma. The loan carries variable interest rates tied to LIBOR plus a specified margin, with principal payments semi-annually and interest payments quarterly. To mitigate interest rate risk, Redwood Trails Wind has entered into interest rate swaps. The loan is secured by the assets of the wind generation facilities and related entities, and includes standard default and acceleration clauses.
Key Highlights
- 1Redwood Trails Wind, LLC (a subsidiary of NEE) obtained a $234 million term loan.
- 2The loan is secured and has a maturity date of December 2029.
- 3Proceeds will fund the development and construction of approximately 237 MW of wind generation capacity in California and Oklahoma.
- 4The loan features a variable interest rate based on LIBOR plus a margin.
- 5Interest rate swap agreements were executed to hedge against interest rate fluctuations.
- 6The loan is a limited-recourse facility, secured by project assets and ownership interests.
- 7The loan agreement includes customary default and acceleration provisions.