Alterra Power secures financing for 11-MW US solar plant
Michigan State University campus, East Lansing
Alterra Power Corp (TSE:AXY) announced today that, together with Inovateus Solar LLC, it has secured a USD-19.9-million (EUR 16.8m) loan facility for the development of a 11-MW solar project.
The Spartan solar power plant will be located on the Michigan State University campus in East Lansing. Commercial operations are expected to start by December 2017 under a 25-year power purchase agreement (PPA) with the Board of Trustees of Michigan State University for all the output, the company said.
The loan was granted by 1st Source Bank, a subsidiary of 1st Source Corporation (NASDAQ:SRCE) and is comprised of a USD-19.8-million construction loan and a USD-500,000 letter of credit. 1st Source will also provide a USD-9.7-million tax equity investment commitment and a USD-10.2-million term loan commitment, both of which will go to retire the construction loan facility commercial operations start. The term loan will have a balloon payment based on a 6-year maturity and 20-year amortisation.
Alterra will manage the plant and hold a majority interest of at least 85%. Construction is being handled by Inovateus, which will also provide operations and maintenance (O&M) services, Alterra noted.