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Polaris Renewable Energy Inc. has finalized an Equity Capital Contribution Agreement (ECCA) concerning Punta Lima Wind Farm LLC, a wholly-owned entity of Santander Bank N.A.
The undertaking, a functional 26-megawatt (MW) onshore wind facility situated in Naguabo, underwent reconstruction and recommissioning by Santander and boasts a 20-year power purchase agreement with the Puerto Rico Electric Power Authority (PREPA), set to conclude in March 2044.
This arrangement is being executed through a tax-equity framework, which will enable Polaris to assume the role of manager and operator of the project while holding a controlling equity stake, with Santander maintaining a tax equity interest in the endeavor.
Completion of the deal hinges on standard closing conditions, primarily involving regulatory approval from local authorities and the signing of a corresponding LLC agreement.
It is anticipated that meeting these conditions will require approximately 90 days. The overall equity investment of $20 million from Polaris will be subject to standard closing modifications including adjustments for working capital. Polaris plans to utilize cash reserves to finance the equity contribution. Santander Corporate & Investment Banking served as the exclusive financial adviser to Santander Bank N.A.
“This strategic acquisition allows Polaris to channel capital into a new jurisdiction while integrating wind into our energy generation portfolio,” remarked Marc Murnaghan, president & CEO of Polaris. “We believe this deal presents appealing short-term returns for our shareholders and considerably expands our growth prospects. This encompasses the adoption of energy storage solutions to deliver competitively priced energy and grid stabilization services while also investigating further strategic opportunities on the island, considering its outlined future energy needs.”
“Santander takes pride in having rehabilitated the Punta Lima wind farm in Puerto Rico and is delighted to transfer its interest to a specialized partner like Polaris,” noted Nuno Andrade, head of global debt financing US at Santander Corporate & Investment Banking. “Support for the island’s clean energy initiatives was the right decision, and we are very satisfied with this outcome.”
Polaris Renewable Energy Inc. has finalized an Equity Capital Contribution Agreement (ECCA) concerning Punta Lima Wind Farm LLC, a wholly-owned entity of Santander Bank N.A.
The undertaking, a functional 26-megawatt (MW) onshore wind facility situated in Naguabo, underwent reconstruction and recommissioning by Santander and boasts a 20-year power purchase agreement with the Puerto Rico Electric Power Authority (PREPA), set to conclude in March 2044.
This arrangement is being executed through a tax-equity framework, which will enable Polaris to assume the role of manager and operator of the project while holding a controlling equity stake, with Santander maintaining a tax equity interest in the endeavor.
Completion of the deal hinges on standard closing conditions, primarily involving regulatory approval from local authorities and the signing of a corresponding LLC agreement.
It is anticipated that meeting these conditions will require approximately 90 days. The overall equity investment of $20 million from Polaris will be subject to standard closing modifications including adjustments for working capital. Polaris plans to utilize cash reserves to finance the equity contribution. Santander Corporate & Investment Banking served as the exclusive financial adviser to Santander Bank N.A.
“This strategic acquisition allows Polaris to channel capital into a new jurisdiction while integrating wind into our energy generation portfolio,” remarked Marc Murnaghan, president & CEO of Polaris. “We believe this deal presents appealing short-term returns for our shareholders and considerably expands our growth prospects. This encompasses the adoption of energy storage solutions to deliver competitively priced energy and grid stabilization services while also investigating further strategic opportunities on the island, considering its outlined future energy needs.”
“Santander takes pride in having rehabilitated the Punta Lima wind farm in Puerto Rico and is delighted to transfer its interest to a specialized partner like Polaris,” noted Nuno Andrade, head of global debt financing US at Santander Corporate & Investment Banking. “Support for the island’s clean energy initiatives was the right decision, and we are very satisfied with this outcome.”
