Chadbourne & Parke represented GE Energy Financial Services in its purchase, from Enel Green Power North America (EGP), of a majority stake in two large scale wind farms in the United States — the Prairie Rose Wind Project in Minnesota, and the Chisholm View Wind Project in Oklahoma.
EFS Prairie Rose, a GE subsidiary, paid $156 million for a 51% stake in the 200 MW Prairie Rose Wind Project. EGP, a leader in the North American renewable energy sector and one of Europe’s biggest renewable energy operators, is contributing $149 million for a 49% stake in the project.
The Prairie Rose wind farm is the first project to be developed by Geronimo Wind Energy under a strategic partnership agreement signed between EGP and Geronimo in 2009. The project will generate enough electricity to power approximately 75,000 homes and displace approximately 650,000 tons of greenhouse gas emissions per year. GE and EGP have also signed an agreement with a syndicate led by JP Morgan and including Wells Fargo and Metropolitan Life Insurance Co, to provide a further $190 million in tax equity for the project. The syndicate members will release funds when the project enters commercial operation, which is expected in the fourth quarter.
Another GE subsidiary, EFS Chisholm, paid $191 million for a 51% stake in the Chisholm View Wind Project. EGP paid $184 million for their 49% share. Chisholm View is expected to start commercial operations by December 2012 and will have an installed capacity of 235 MW of energy from 140 wind turbines, expected to generate enough energy to power approximately 70,000 average U.S. households. A syndicate led by JP Morgan has signed a tax equity deal with GE and EGP. Under the deal, the syndicate will make a cash contribution of $220 million to the project in return for an equity interest.
“We are pleased to have been able to assist GE in both of these significant investments,” said Chadbourne partner Paul Weber. “These latest deals reinforce Chadbourne’s strong track-record in the financing of wind power projects in the U.S.”
Working on the deals for Chadbourne, were partners Paul Weber and Eli Katz and associates Robert Eberhardt, Michael Masri and William Nicholson.
