The proceeds of this financing will be used to complete construction of the 10.5 MW solar – wind power project that is believed to be the first utility scale renewable energy project that combines wind and solar under one power purchase agreement. Western Wind now has 165.5 MW of wind energy and solar power capacity either in production or in construction.
KeyBank National Association (KeyBank) has arranged a construction loan of $16 million and a cash grant bridge loan of $4.2 million. The bridge loan will be repaid upon receipt of the cash grant and the $16 million construction loan would convert to a 7 year term with a hedged fixed interest rate averaging approximately 6.78% per annum. The term loan is amortized over 18 years. The KeyBank loans are secured by the assets of Kingman Energy Corp and a guarantee through the construction period has been provided by Western Wind.
A $4 million subordinated loan was provided by a vendor at an interest rate of 6% per annum and secured by a second lien on the cash grant and assets of the Kingman Energy Corp. The loan matures the earliest of the date upon which the Cash Grant is received and one hundred and thirty five (135) days after the Commercial Operations Date.
Incentive Stock Options
Western Wind wishes to announce that it has granted, to employees, consultants and directors 3,000,000 incentive stock options at a price of $1.09 per share exercisable for a period of five (5) years from the date of grant.
KeyBank is the banking division of Cleveland-based KeyCorp (NYSE: KEY), one of the nation’s largest bank-based financial services companies, with assets of approximately $94 billion. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally.
Western Wind is a vertically integrated renewable energy electrical production company that currently owns over 500 wind turbines with 165.5 MW of rated capacity either in production or in construction in the States of California and Arizona. Western Wind further owns additional development assets for both solar and wind energy in California, Arizona, Ontario, Canada and has a development team in the Commonwealth of Puerto Rico.
Western Wind is in the business of owning and acquiring land sites and technology for the production of electricity from wind and solar energy. Management of Western Wind includes individuals involved in the operations and ownership of utility scale wind energy facilities in California since 1981.