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MATL rushes to close WAPA debt

11 September 2009

Read more: [montana alberta tie] [project finance]

Canadian developer Tonbridge Power is rushing to close a senior debt financing for the construction of the Montana Alberta Tie (MATL) project before its construction permit expires.

According to a filing with the Federal Energy Regulatory Commission, Tonbridge wants to close a $161 million 30-year senior debt financing with the Western Area Power Administration (WAPA), one that would be priced at Western's cost of funds: Western recently received authority to borrow $3.25 billion from the US treasury to finance transmission infrastructure under Section 402 of the American Recovery and Reinvestment Act of 2009. A term sheet for the MATL deal was announced on 10 August.

The Montana Alberta Tie is a proposed 240kV transmission line that would run 345km from Lethbridge, Alberta to Great Falls, Montana. It has a rated capacity of 300MW and Tonbridge says it has commitments for all of this capacity, but could be expanded to...


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