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Ormat secures $140m loan for expansion of McGinness plant in Nevada

Ormat's Desert Peak 2 geothermal power plant, Nevada (source: Ormat Technologies)
Francisco Rojas 1 Sep 2014

The McGinness Hills Phase 2 project in Nevada is expected to come on line in the first half of 2015, bringing the complex’s total capacity to approximately 70 MW

Ormat Technologies and their project subsidiaries, have signed a $140 million loan to finance the construction of the McGinness Hills Phase 2 project in Nevada. The plant is expected to come on line in the first half of 2015, bringing the complex’s total capacity to approximately 70 MW. Ormat is selling energy produced at McGinness Hills to NV Energy under contract through December 2032.

This drawdown is the last tranche under the Note Purchase Agreement with John Hancock Life Insurance Company (USA) and guaranteed by the U.S. Department of Energy’s Loan Programs Office in accordance with and subject to the Department’s Loan Guarantee Program under Section 1705 of Title XVII of the Energy Policy Act of 2005.

The $140 million loan, which matures in December 2032, carries a 4.61% coupon with principal paid quarterly. The OFC 2 Notes, which includes loans for the Tuscarora, Jersey Valley and McGinness Hills complexes, is rated “BBB” by Standard & Poor’s.

Mr. Isaac Angel, CEO of Ormat Technologies, said, “We are excited to close on this financing and expand capacity at McGinness Hills. The low-risk phased approach to development enables us to secure financing on such attractive terms. With the financing secured, we will be able to free up capital to continue to take advantage of developing opportunities across the globe and enhance returns for shareholders.”

Source: Press Release from Ormat Website