An American renewable energy joint venture has secured almost US$400mn in debt finance.

Northeast Wind, a partnership between First Wind and Emera, will use the funds to refinance existing debt, related to renewable energy projects.

The facility consists of a US$320mn term loan and a US$75mn letter of credit (LC). The term loan is priced at Libor plus 4%, with a 1% Libor floor (meaning the company will play the designated rate, provided Libor doesn’t fall below 1%).

On the term loan, BNP Paribas, CIT Group, Goldman Sachs, Industrial and Commercial Bank of China, Key Bank, Morgan Stanley and Union Bank (of California) acted as joint lead arrangers and bookrunners.

John LaMontagne, director of communications at First Wind, tells GTR that the LC was arranged by BNP Paribas, Key Bank and Union Bank.

He adds: “We were pleased to find there was strong demand for our offering, which is a reflection on our JV with Emera. We believe there’s a growing interest on the part of lenders to invest in renewable energy projects that have a proven track record of success.”

He confirms that the JV has no plans to return to the market for new debt in the foreseeable future.