The international law firm Milbank, Tweed, Hadley & McCloy, LLP, led by Global Project Finance partner Allan Marks, represented the institutional lenders in the private placement of approximately $143 million of Pass-Through Certificates for the leveraged lease financing of the Hatchet Ridge Wind Farm, a 101.2 MW-rated wind-powered electricity generation facility located in Shasta County, California. The Hatchet Ridge project, which started commercial operation this month, is the only large-scale wind project to become operational in California in 2010. The Hatchet Ridge wind farm was developed by an indirect, wholly-owned subsidiary of San Francisco-based Pattern Energy Group. Additionally, a separate team at Milbank represented Crédit Agricole Corporate and Investment Bank as letter of credit issuer.
“This innovative leveraged lease transaction efficiently uses renewable energy tax incentives to attract long-term capital for a newly built California wind power plant,” said Mr. Marks. “It also shows the depth of the institutional private placement debt market for this type of clean energy investment. This transaction is one of several year-end closings on which we are working that demonstrate how robust the renewable energy sector has been in attracting new investment.” Crédit Agricole Securities acted as sole placement agent for the Pass-Through Certificates.
Mr. Marks further commented, “Despite challenging financial markets in 2010, we have been able successfully to close this financing and more than a dozen other renewable energy transactions in the third and fourth quarters, aided in no small measure by favorable government policies that encourage green power.” Milbank represented the lenders in the original construction financing for Hatchet Ridge.
Assisting Mr. Marks on this transaction were Global Project Finance associates Timothy K. Wendling (LA), Alyssa Frederick (NY) and Hao Huang (LA), together with leasing partner Helfreid Schwarz (NY); environmental and land use partner Lewis T. Putman (DC); partner Mark Regante (NY), associate Joanna Grossman (NY) and of counsel Leah Karlov (LA) on tax matters; partner David Lamb (LA), associates Melissa Clark (LA) and Chloe Bloom (LA) on real estate matters; Global Securities Group partners Joy K. Gallup (NY) and Robert Williams (NY) and associates Kevin MacLeod (NY) and Kristi Dalling (NY) on securities issues; and energy regulatory advisor James C. Liles (DC). Global Project Finance associate Caroline Conway (NY) assisted the Milbank team on the letter of credit facility. Global Project Finance associates Laurae Rossi (LA) and Marco McLees (LA) handled the payoff of the original construction loans.
