News

Chadbourne & Parke Represents Terra-Gen Power In $1.2 Billion Financing For Largest Wind Energy Project In The U.S.

July 27, 2010

Chadbourne & Parke LLP represented Terra-Gen Power in the approximately $1.2 billion financing for four wind energy projects totaling 570 megawatts of capacity at Terra-Gen’s Alta Wind Energy Center in Tehachapi/Mojave, California.
The financing, which closed July 21, includes a forward commitment for the first ever sale-leaseback of a portfolio of wind energy projects in the U.S.

These four projects constitute phases II-V of Terra-Gen’s 3,000 MW wind energy initiative known as the Alta Wind Energy Center which, when completed, will be the largest wind energy project in the U.S. and one of the largest in the world. Chadbourne also represented Terra-Gen in the approximately $400 million financing for the 150 MW Alta I project that closed in March 2010.

The latest financing included approximately $580 million worth of pass-through certificates issued to institutional investors under Rule 144A, an approximately $500 million construction bridge loan facility, and approximately $120 million of other credit facilities.

Citi, Barclays Capital and Credit Suisse served as joint book-running managers for the issuance of the pass-through certificates, with Mitsubishi UFJ Securities, Credit Agricole Securities, ING and Rabo Securities acting as co-managers. A lending group consisting of MUFG Power & Utilities Group, Credit Agricole, ING Capital, Rabobank, Citi, Barclays and Bank of Montreal provided the credit facilities with Credit Agricole acting as administrative agent and MUFG Power & Utilities Group, Credit Agricole, ING Capital, Rabobank, Citi and Barclays acting as joint lead arrangers.

As part of the permanent financing structure for Alta II-V, Citibank, N.A. has committed to buy and lease back to Terra-Gen each of these projects at completion.

“We are very proud to have been able to assist Terra-Gen in closing this landmark financing which is the first large portfolio of wind projects using a leveraged lease finance structure in the U.S.,” said Chadbourne partner Adam Umanoff.

The Alta projects are being developed by Terra-Gen Power, an independent power company based in New York that develops, owns and operates renewable energy projects. Terra-Gen is owned by affiliates of Arclight Capital Partners and Global Infrastructure Partners.

The Chadbourne team was led by Mr. Umanoff and included Richard Sonkin, Eli Katz, Marc Rossell, N. Theodore Zink, Richard Leder, John Baecher, Majorie Glover, Rob Eberhardt, Richard Susalka, Richard Wright, Blake Betheil, Melinda Sobin, Ben Carson, Nilo Barredo and Christy Rivera in New York; Lloyd MacNeil, Vasilos Salamandrakis, Tom Dupuis, Patrick Erickson, Alice Bodnar, John Ha, Matthew Nesburn, Krystyn Tendy, Daniel Sinaiko, Thomas Byrne and Lois LeBar in Los Angeles; and Adam Wenner in Washington.