November 2014
Palisade Investment Partners have successfully completed the refinancing of a A$136m (US$116.8m) five-year project loan with existing lenders Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking Corp for the 111MW Waterloo Wind Farm project.
The loan being refinanced was put in place in May 2013 with Commonwealth Bank of Australia and Industrial & Commercial Bank of China also committing after Palisade and Canadian investor Northleaf Capital Partners acquired a 75% stake in Waterloo Windfarm from EnergyAustralia Holdings Ltd. (EnergyAustralia subsequently sold it’s remaining 25% stake in May 2015)
The two Japanese mega banks have committed equally to the refinancing with CBA retaining its role as facility agent and security trustee.
Palisade acted as financial advisor on the deal which delivered significant benefits to the Waterloo business, including a 65bp reduction in margins from acquisition facility; 4.5 years of interest only option replacing a 5 year amortising facility and $35m in additional free cash flow generated over the next 5 years.