The senior debt facility in the Wattle Point Windfarm has been successfully refinanced with Commonwealth Bank. Wattle Point now has outstanding debt of approximately $167 million.
[toggle]Craig Whalen, the ICG Director who led the refinancing, said that the new debt facility was put in place in difficult credit markets. ‘Successfully refinancing a capital structures of this scale cannot be taken for granted at the moment. Debt markets are tough and it’s only quality assets like Wattle Point that are winning the support of the banks.’
Wattle Point’s gearing has been reset to be in line with current market conditions. ICG anticipated that changes in these costs and adverse valuation changes are not expected to follow the refinancing. Whalen said, ‘ICG regularly marks-to-market the underlying debt assumptions of its projects. As a result, the new debt terms and conditions were already factored into Wattle Point’s valuation’.
Wattle Point Windfarm is a 91MW generator located on the York Peninsula in South Australia. The project is supported by a long-term off-take agreement from AGL and benefits from a strong wind regime. ICG acquired the asset for EIT in 2007.[/toggle]