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Western Wind Energy Corp. says it has closed a term loan facility with an institutional lender to borrow - through its wholly owned subsidiary, Western Wind Energy U.S. Corp. - an aggregate sum of $25 million.

The term loan is structured in two parts, with the first draw of $15 million being available immediately for repayment of the company's existing corporate bridge financing, transaction costs, arranging and lending fees, and reserve accounts, and is secured by future Windstar cash distributions.

The second commitment of $10 million would be available to fund the company's Yabucoa equity contribution and/or the repayment of the REC promissory note to the Yabucoa solar project and to facilitate the financial close of project financing, and will be secured by future Yabucoa cash distributions, Western Wind says.

The term of the loan will be for five years and will bear interest at a base rate of 10.5% per year, plus a variable London Interbank Market rate, which, taken together, including an interest-rate hedge, will not exceed a total of 11.5% for the term of the loan.

The Yabucoa commitment under the corporate loan agreement expires May 16, 2013, and a commitment interest rate of 4% is charged on the undrawn amount, the company notes, adding that the loan can be repaid at any time.

As consideration for advancing the loan, Western Wind will issue to the lender an aggregate of 400,000 share purchase warrants, each of which will entitle the holder to acquire one additional common share in the capital of the company at a price of $2.50 per share for a period of five years after the date the warrants are issued. An arrangement fee of 3% of the facility is payable in connection with the transaction, in addition to annual agency fee payments of $50,000.

The hold period for the warrants and any shares issued upon exercise of the warrants will expire on March 16, 2013.



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