Innergex announces the closing of a construction financing and tax equity commitment for its Griffin Trail project, a 225 MW wind facility located in Knox and Baylor Counties, in north-west Texas. The US$276.2 million (CAN$354.5 million) financing has been arranged with Sumitomo Mitsui Banking Corporation acting as Coordinating Lead Arranger, and CIBC acting as Joint Lead Arranger, backed by a US$171.4 million (CAN$220.0 million) tax equity commitment from Wells Fargo to be provided upon the commercial operation date.

The project is expected to produce a gross estimated long-term average of 819.0 GWh per year, enough to power approximately 57,000 Texan households with clean energy, and to benefit from 100% of the US Production Tax Credits (“PTCs”), representing US$0.025 (CAN$0.032), indexed to inflation, per KWh of electricity produced for the first 10 years of operations, which is comparable to power purchase agreements with similar tenors from government backed utilities in Canada. Griffin Trail should generate a projected Adjusted EBITDA of US$4.5 million (CAN$5.8 million) and a projected Adjusted EBITDA Proportionate with PTCs of approximately US$26.7 million (CAN$34.3 million) per year on average for the first five years of operation.

In addition, the tax equity commitment made by Wells Fargo includes a partial pay as you go (“Pay-go”) funding arrangement under which, when the actual annual MWh production exceeds a certain production threshold, the Tax Equity Investor is obligated to make a cash contribution (“Pay-go Contribution”) to the Corporation. Expected Annual Pay-go Contribution for the Griffin Trail project is $4.0 million (CAN$5.2 million). In total, the project should generate an annual contribution of US$30.7 million (CAN$39.4 million) when combining the projected Adjusted EBITDA Proportionate and the Pay-go Contribution.