Major Renewable Energy Project in Texas Begins Commercial Operations

Business December 15, 2015

Chadbourne Advises Alterra Power on Shannon Wind Farm Project

Chadbourne & Parke LLP has advised Alterra Power on a series of transactions related to the Shannon wind farm, a renewable energy project located in Clay and Jack Counties, Texas. The project sponsors—Alterra Power Corp. and Starwood Energy Group Global, LLC—today announced the commencement of commercial operations, and funding of tax equity for the 204.1 MW project.

Chadbourne lawyers advised Alterra on multiple transactions during the course of the project. Initially, the firm advised Alterra Power on the acquisition of the Shannon wind farm from Horn Wind in 2014. The team subsequently represented Alterra on the formation of a joint venture with Starwood Energy, and the related construction financing for that deal. Most recently, Chadbourne advised Alterra on a tax equity investment of approximately US$219 million into the project by subsidiaries of Citibank and Berkshire Hathaway. The proceeds of this most recent transaction will be used primarily to retire the project's construction loan facility.

"We are proud to have represented Alterra on this major wind project in Texas. Our team helped Alterra navigate a complex and novel transaction with some of the leading developers and financial institutions active in the market today. This is yet another example in the long line of successful financings that our clients have achieved in the renewables sector," said Chadbourne’s Eli Katz.

The Shannon wind farm was constructed under an EPC contract with Mortenson Construction's Wind Energy Group. General Electric Company supplied 119 wind turbines for the project, and will provide operations and maintenance services for the turbines under a long-term contract. The majority of the project's output will be sold under a 13-year energy hedge contract with a Citibank affiliate. Alterra and Starwood Energy own the sponsor interests in the project under a 50/50 joint venture.

The Chadbourne team included partners Eli Katz, Paul Weber and Bob Shapiro, counsel Jocelyn Lavallo and Sue Cowell, and associates William Nicholson, Bob Gambo, Eric Kamerman and Alex Herman.

The Shannon wind farm is the latest major power project for Chadbourne, which is a market-leading law firm for infrastructure and energy projects. Chadbourne once again ranked as the top global legal adviser for project finance transactions in the first three quarters of 2015, according to research prepared by IJGlobal. The firm handled more than US$41 billion in transactions, nearly US$10 billion ahead of the second-ranked firm.

About Chadbourne & Parke

For more than a century, Chadbourne & Parke has counseled innovators around the world. We are a full-service law firm that leverages the extraordinary talent from our 11 international offices to offer the highest caliber client service in more than 80 countries on six continents. Today, we are recognized internationally for our groundbreaking work in emerging economies and our deep experience in energy and infrastructure, corporate and finance transactions, international disputes, and bankruptcy and financial restructuring.