Allco Finance says it has completed the sale of its US Tehachapi wind farm assets, and has cut its senior debt by $230 million as a result.
Allco announced last month that it and its co-investors had agreed to offload the Californian wind farm, considered one of its best overseas assets, to a US consortium for $US325 million ($346 million).
The sale has resulted in an anticipated after tax net share of sale proceeds for Allco of approximately $163 million, as well as releasing Allco from contingent commitments of $68 million, it said.
Allco global head of infrastructure Nick Bain said although it was disappointing to sell the project, he was delighted with the outcome.
“It is disappointing to have to divest a one-of-a-kind project like Tehachapi,” he said.
“Nonetheless, we are pleased with the financial results of the sale, which was managed jointly by our financial adviser, Marathon Capital, and Allco’s infrastructure team.
“ArcLight/Terra Gen now has the opportunity to take this exciting project forward towards full build out.”
The Tehachapi project comprises approximately 3100 MegaWatts of planned wind development along with key land control, critical transmission queue positions and an executed and fully approved 1550 MW long term power purchase agreement with Southern California Edison.
The full build out of the Tehachapi project will occur over the next eight to 10 years and will ultimately supply up to 1 million Los Angeles area households with renewable power.
17 July 2008
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