IRVINE, Calif.--()--Edison Mission Energy (EME), a subsidiary of Edison Mission Group, announced that it has closed a $75 million debt financing for its High Lonesome Mesa, New Mexico, wind project that was commissioned in July 2009. EME funded the balance of project costs with an equity contribution and a Treasury cash grant.
Located in Torrance County, about 90 miles southeast of Albuquerque, the $190 million project generates 100 megawatts of electricity. Electricity at the site is generated by 40 wind turbines manufactured by Clipper Windpower, and sold under a long-term contract to Arizona Public Service.
The financing package consists of $50 million of bonds issued by the New Mexico Renewable Energy Transmission Authority (NMRETA), with proceeds loaned to the High Lonesome project, and $25.255 million issued directly by the project.
The NMRETA issuance was sized to reimburse High Lonesome for transmission-related expenditures, including transmission lines owned by the project, substation equipment and upgrades to Public Service of New Mexico's transmission system.
Both bonds mature in seven years on November 1, 2017. The interest rate is 6.85 percent for both series.
George K. Baum & Company served as the placement agent. Macquarie Bank Limited purchased all of the bonds at closing.
An Edison International (NYSE:EIX) company, Edison Mission Group is one of the largest developers of wind energy projects in the U.S. with a current portfolio of 29 projects in operation or under construction in 10 states with a total generating capacity of more than 1,800 megawatts.