A Short Note On The Funding II, Inc.

872 WordsJun 28, 20164 Pages
• Viento Funding II, Inc. (“Viento” or the “Borrower”) owns controlling interest in a portfolio of three operating wind power generating plants (the “Projects”) located in Nebraska, New Mexico, and Texas. The Projects have an aggregate net capacity of 361 MW and achieved COD between December 2005 and April 2009. The Projects are fully contracted under three Power Purchase Agreements (PPAs). Each of the PPAs has a 20-year term with the earliest expiring in December 2025. The energy off-takers are Southwestern Public Service Company (“SPSC”) (A-/Baa1/BBB; SFS Equivalent 4+) and Nebraska Public Power District (“NPPD”) (A+/A1/A; SFS Equivalent 3+). • In 2013, the Borrower refinanced its existing Senior Secured Credit Facilities (the “Term Loan”). The Term Loan is structured to a 15-year amortization schedule, on a semi-annual basis, to a balloon of approximately $74 million at maturity. The Term Loan is sized to provide a minimum DSCR of 1.40x under P50 wind resource and a minimum DSCR of 1.0x under P95 wind resource. The SFS EF AM share of the Term Loan was $50.0 million with the current exposure (at the end of March 2016) of $42.2 million. • The 2015 operating performance was adversely affected by the main transformer failure at San Juan Mesa wind farm (“San Juan”) (120 MW or about 33% of the total capacity) resulting in the complete shutdown of the wind farm for two months. Shutdown of the San Juan wind farm resulted in about 22% decline in the revenues over the SFS EF AM
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