Pilbara transmission line update
Alinta Energy secures financing for Pilbara transmission line development.
Alinta Energy has successfully secured $175 million in financing for development of a power solution to supply the long-term power supply requirements of the Roy Hill Mine in Western Australia’s Pilbara region. The package also includes a $3.3 million working capital facility.
The funding will be used to upgrade Alinta’s Newman power station and construct a transmission line from the power station to the Roy Hill Mine. The project includes construction of the 123km, 220kV transmission line, as well as a 33kV distribution system and 6MW of diesel fuelled generators located at the Roy Hill Mine. The project is scheduled to be operational in early 2015.
The funding package is reflective of Alinta Energy’s financial development since the 2011 debt-for-equity swap in which the company came under the ownership of institutional investors, led by TPG Capital. In 2013, Alinta Energy saw a dramatic improvement in earnings, and placed A$1.2bn of senior secured debt in the US Term Loan B (TLB) market. The improvement earned TPG’s global investment turn-around prize for FY13.
This latest transaction, financed by SMBC, Investec and Westbourne Capital, will provide additional capital towards Alinta Energy’s growth in the Pilbara.
‘This transaction demonstrates Alinta Energy’s strengthening financial performance, which continues across our national operations following the dramatic improvement in FY13,’ said Alinta Energy CEO, Jeff Dimery.
‘Importantly, it also finances our growing presence in the Pilbara, which builds on the 20-year history of Alinta’s power assets providing reliable and secure energy to the region. Alinta Energy’s involvement with the Roy Hill Project, and construction of this transmission line, will open doors for continued investment in WA, and we look forward to bringing our reliable and competitive power solutions to additional customers.’