Allegiance Capital Facilitates Development Agreements Between Energos and Two Texas Wind Farms

Allegiance Capital, an international investment banking firm serving privately-held middle-market companies, has facilitated agreements between Energos and developers of two West Texas wind power projects.

Madrid-based Energos will provide "greenfield" development capital and development services to Caprock Wind and Peak Wind, L.L.C. for projects slated to deliver approximately 200 megawatts of power each. Allegiance Capital will provide ongoing oversight services for both projects. Terms of the private transactions have not been disclosed.

"Energos is highly experienced in renewable energy development," said Fred McCallister, vice president at Allegiance Capital. "It was a pleasure working with an investor who understands the risks as well as the opportunities of wind power development and takes a long-term view of the investment."

The capital and development support will be instrumental in taking the projects from their current "greenfield" state to "construction ready." Development has begun, and the plants are expected to be in production by 2014.

"We are very excited about the Arranz Wind Caprock I and the Arranz Wind Tuxedo I projects. We understand that a long-term perspective must be taken on these projects given the current lack of transmission lines; but, we also believe that with the area’s excellent wind resources and Texas’ leadership role in transmission development, these projects are excellent long-term investments for our company," said Antonio Garcia Alcalde, Chief Operating Officer, Energos. The projects join an extensive portfolio of renewables investments held by Energos in both Spain and the U.S.

Allegiance Capital has closed four renewable energy transactions in the past 18 months and currently has several active engagements in the renewable energy and electrical transmission and distribution sectors.

"Texas has a long-term vision for development of domestic energy resources, and renewables play an important role in the future of energy in Texas," added McCallister.

Currently Texas’ regulatory environment is favorable to wind power and other renewable energy sources. The state, like most in the nation, is faced with a power transmission challenge and is searching for ways to not only provide economically-viable domestic energy, but also to build out the transmission lines needed to move renewable energy from West Texas to the usage centers in the eastern part of the state.

"We see significant opportunities in both renewable energy and power infrastructure projects. In many cases, the appetite for funding these projects is greater among non-U.S. investors who tend to take a longer-term approach to investment and who are currently advantaged by currency exchange rates," McCallister said.