E.ON Climate & Renewables secures financing for Texas wind farm
J.P. Morgan, Wells Fargo invest in $223.6 million deal
CHICAGO, Oct. 30, 2012
CHICAGO, Oct. 30, 2012 /PRNewswire/ -- E.ON Climate & Renewables (EC&R) North
America announced today it has secured institutional equity financing of
approximately $167.7 million and a commitment to fund expected capital
contributions of approximately $55.9 million from a group of investors that
includes JPM Capital Corporation (J.P. Morgan) and Wells Fargo Wind Holdings
LLC (Wells Fargo) in exchange for a partial interest in EC&R's recently
completed Magic Valley Wind Farm. J.P. Morgan acted as lead investor in the
"We're delighted to demonstrate continued success in the tax equity market and
we're pleased to show the attractiveness of our wind energy portfolio," said
Dr. Verena Volpert, Senior Vice President Finance, E.ON AG. "Working with an
investor team that includes J.P. Morgan and Wells Fargo proves our ability to
raise capital in a tax-efficient manner."
The project, the first wind farm in Willacy County, Texas, started operations
in September and is located 5 miles east of Raymondville. The wind farm
consists of 112 Vestas 1.8 megawatt turbines providing more than 203 megawatts
(MW) of power—enough to provide clean power to more than 60,000 households.
"Wind farms generate clean, affordable, homegrown electricity, creating jobs
and providing an economic shot in the arm to farmers, ranchers and rural
communities across America," said Steve Trenholm, CEO, EC&R North America.
"J.P. Morgan and Wells Fargo are natural partners due to their leadership and
experience in the tax equity market."
This project is expected to generate more than $53 million in local taxes, pay
$12 million in local salaries, and earn landowners more than $87 million. At
the height of construction, the Magic Valley Wind Farm project brought more
than 200 jobs to the area.
E.ON Climate & Renewables (EC&R) is responsible for the E.ON group's
large-scale renewable energy activities around the world. Tapping renewable
energy sources offers enormous alternatives, both from a business perspective
and for the environment. E.ON Climate & Renewables has already invested €8
billion in renewable energy projects and will continue to expand the share of
renewable energy in E.ON's power generation portfolio. E.ON has thus taken a
leading role in developing renewable energy sources worldwide. For more
information, please visit www.eon.com/renewables.
This press release may contain forward-looking statements based on current
assumptions and forecasts made by E.ON Group management and other information
currently available to E.ON. Various known and unknown risks, uncertainties
and other factors could lead to material differences between the actual future
results, financial situation, development or performance of the company and
the estimates given here. E.ON AG does not intend, and does not assume any
liability whatsoever, to update these forward-looking statements or to conform
them to future events or developments.
Matt Tulis, Communications Manager, EC&R NA
SOURCE E.ON Climate & Renewables
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