Dec 6 2010
Finavera Renewables announced that it is progressing in the equity agreements for the wind projects, namely, Wildmare, Bullmoose, Tumbler Ridge, and Meikle, in British Columbia. Currently, the company will focus on the Wildmare and Tumbler Ridge projects, for which the company has scheduled to start construction in 2011.
In June, the company had assigned Capital West Partners to get a partner to offer about $200 million or equity for the projects. The total estimated capital cost of the project is $800 million. For the right to offer equity, the partner will have to offer a considerable free carry to Finavera in the projects. Out of several proposals received, the company has short listed some of it. At present, the company is in negotiations with a preferred equity provider. Finavera anticipates signing of one or more agreements for the near-term projects in January 2011.
The CEO of the company, Jason Bak, said that getting equity is an important milestone in a wind farm project. Securing equity will provide the company considerable ownership interest in all the wind projects. It will also offer a financing solution that decreases the company’s capital structure dilution. Bak added that the plan of starting construction in 2011, and commencing commercial operation in 2012 are on track.