Project: 45MW Carraig Gheal Wind Farm, Argyll Scotland
Role: Advised the project company Carraig Gheal (Wind Farm) Ltd on senior debt funding
2012Quayle Munro advises on the £94m financing of Carraig Gheal Wind Farm, Argyll, Scotland
Quayle Munro is pleased to announce that it has advised Carraig Gheal (Wind Farm) Limited (“Carraig Gheal”) on structuring and securing the senior debt funding package which has been put in place for the construction of the 46MW wind farm. Financial close for the transaction was achieved on January 10th 2012. The first turbines will arrive on site in September 2012 and the project will be completed by Q1 2013, therefore benefiting from 1.0 ROC for the entirety of its operational life.
This transaction represents one of the largest onshore wind deals to achieve financial close in some of the most challenging market conditions ever seen.
The funding package, totalling £94m (term loan and associated LC and other facilities), is being provided by Lloyds Banking Group and the Royal Bank of Scotland. The term of the debt is 17 years post completion of construction. The wind turbines will be supplied by Siemens along with a long term service package, the balance of plant contract has been placed with Blackwells and Statkraft will act as power offtaker under a 17 year contract.
Quayle Munro acted as Financial Adviser to the borrower with McGrigors as Legal Adviser. Norton Rose and Burness acted as legal advisers to the banks with Sgurr and JLT providing technical and insurance advice respectively.
This transaction further enhances Quayle Munro’s reputation in the renewable sector and follows on from Wadlow Wind Farm, where Quayle Munro advised Barclays Infrastructure Funds on the acquisition and financing, and Baillie Wind Farm in Caithness where Quayle Munro advised the majority shareholders on the sale of a majority stake to Statkraft UK.
Rob Cormie, Managing Director, Quayle Munro, commented:
“Advising on raising this quantum of debt on the terms achieved is a very significant achievement and we are proud to have played our role in bringing this deal to fruition. The key elements were deep sector knowledge, long standing banking relationships, structure, pragmatism and a willingness by all parties to secure an appropriate and acceptable financing package in one of the most challenging funding markets we have ever seen.”
