First
U.S. Offshore Wind Project to Reach Financial Close Milestone
Deepwater Wind Block Island, a
wholly-owned subsidiary of Deepwater Wind, has fully financed the Block Island
Wind Farm, reaching financial close on more than $290 million in project
financing provided by Mandated Lead Arrangers Societe Generale of Paris,
France, and KeyBank National Association of Cleveland, Ohio. In addition to its
role as Mandated Lead Arranger, Societe Generale also acts as Financial Advisor
for Debt Raise, Bookrunner and Administrative Agent.
With these major agreements, Deepwater
Wind has now secured all debt and equity funding needed to construct and
operate its 30-megawatt Block Island Wind Farm – already under construction.
Deepwater Wind is the only United States
offshore wind company to reach this critical milestone. The Block Island Wind
Farm will be America’s first offshore wind farm.
“We’re ecstatic to reach financial close
and thrilled to be partners with Societe Generale and KeyBank for this
groundbreaking clean energy project,” said Deepwater Wind CEO Jeffrey Grybowski. “We’re full speed
ahead and moving ever closer to ‘steel in the water.’”
“Deepwater has assembled a world class management team and
experienced contractors to develop this landmark project. As the first offshore
wind farm to be developed in the U.S., the Block Island Wind Farm represents a
milestone that expands SG’s offshore wind sector footprint outside of Europe
and further strengthens our extensive global track record of advising clients
and arranging debt for offshore wind projects.”
“Deepwater has long been at the
forefront of offshore wind development,” said Andrew Redinger, managing
director and head of KeyBanc Capital Markets Utilities, Power and Renewables
Group. “We are pleased to provide financing for the first offshore wind project
to be fully financed in the U.S., and look forward to working with Deepwater on
future, transformative projects.”
The financing from Societe Generale and
KeyBank is in addition to more than $70 million in equity funding already
provided by Deepwater Wind’s existing owners, principally an entity of the D.E.
Shaw Group.
Construction is well underway on the
wind farm.
- Alstom will supply five Haliade 150 6 MW offshore wind turbines for the project and has already completed the fabrication in Denmark of all 15 blades for the project.
- Gulf Island Fabrication, Inc., began fabrication work in January 2015 at its facilities in Houma, Louisiana, on the wind farm’s five steel jacket foundations. That work is scheduled to be complete in several months.
- Rhode Island-based Specialty Diving Services is expected to begin additional fabrication work on components of the foundation substructures at Quonset, Rhode Island in the coming weeks.
“Steel in the water” is planned for this
summer, when all five foundations are scheduled for installation off the Block
Island coast. The project will be in-service in the fourth quarter of 2016.
“We are on the cusp of bringing offshore
wind from theory to reality in the U.S. We’re incredibly proud of our position
at the forefront of the U.S. offshore wind industry,” Grybowski said.
“We’ve
brought together some of the best American and European expertise to build an
outstanding project and finance team. We’re poised to launch a new American
clean-tech industry, and it all starts here with our work on the Block Island
Wind Farm.”
Latham & Watkins, LLP acted as borrower’s counsel; Hinckley
Allen, LLP, of
Providence, R.I., acted as local counsel; and Van Ness Feldman, LLP acted as regulatory counsel to Deepwater
Wind Block Island.
Chadbourne & Parke, LLP acted as lenders’ counsel and Locke
Lord Edwards, LLP, of
Providence, R.I., acted as lenders’ local counsel.
Green Giraffe acted as financial advisor
for commercial arrangements to Deepwater Wind Block Island, and Mott MacDonald
acted as Independent Engineer.
