A Study On Cpv Keenan II Renewable Energy Company Essay

CPV Keenan II Renewable Energy Company, LLC (â€Å"Keenan† or the â€Å"Borrower†) is a non-recourse, special purpose entity that owns and operates a 151.8 MW (the â€Å"Project†) wind farm located in Woodward County, Oklahoma. The Borrower is owned by Competitive Power Ventures Holdings, LLC (â€Å"CPV†) and GE Energy Financial Services (â€Å"GE†) (NR) and Tyr Energy Inc. (â€Å"Tyr†) (NR) are tax equity investors. In February 2014, SFS EF AM committed to the Borrower’s $133.0 million Senior Secured Term Loan (the â€Å"Term Loan†). The Term Loan will fully amortize over by December 2028 under the P50 exceedance based energy output. At the end of August 2016, SFS F AM’s share of the Term Loan was $27.3 million. The Analyst notes that the Term Loan will fully amortize six months before the expiry of the 20-year wind energy purchase agreement (â€Å"WEPA†) with the Oklahoma Gas Electric Co. (â€Å"OGE†) (A-/A1/A; SFS Equivalent Rating 3). The operating performance assessment for the Trailing Twelve Months ending June 30, 2016 (the â€Å"TTM†) is based on the Project’s actual energy generation profile, the plant availability factor, the strength of the wind resource, the operating costs incurred comparative to the SFS EF AM forecast, and the revenues generated comparative to the SFS EF AM forecast. The actual energy output for the TTM was slightly better than the SFS EF AM forecast due to the robust wind resource noted during the review period. The actual energy output of 604 GWhs was about 2% higher than the SES