First Wind finances Route 66
First Wind says it has obtained $206m in financing for its planned 150MW Route 66 project in Texas, which is experiencing a boom in wind energy development.
Morgan Stanley and Santander acted as joint lead arrangers, with Morgan Stanley serving as the administrative agent. The two banks also committed tax equity into the deal.
Morgan Stanley Commodities is providing a long-term Electric Reliability Council of Texas (ERCOT) power hedge and BayernLB bank is providing term debt financing for the project.
The project has qualified for the federal production tax credit (PTC), according to First Wind, based in Boston.
Vestas will supply 75 V110 turbines with a capacity of 2MW each. The project, the developer’s first in Texas, is located near Amarillo.
Route 66 will deliver power to major load centers using high-voltage transmission lines recently completed in the Texas Panhandle and West Texas.