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 /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 financing.
"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