Chadbourne & Parke LLP represented the lead arranger and lender for the financing of the 100 MW Mustang solar project to be located in Kings County, California. The Mustang project benefits from long-term power purchase agreements with Sonoma Clean Power Authority and Marin Clean Energy, two community choice energy aggregators (CCAs) that allow California municipal governments to pool the electricity demand of their communities. The Mustang project is the first project of its size to be financed on the basis of power purchase agreements with CCAs. The sponsor for the project is Recurrent Energy, and a tax equity investment is being provided by US Bank.
The financing consisted of a construction period credit agreement that provides for a US$75 million construction loan facility, an approximately US$90 million tax equity bridge loan facility and an approximately US$8 million letter of credit facility, as well as an operating period back-leverage credit facility with a US$75 million term loan facility and an approximately US$16 million letter of credit facility.
The Chadbourne team was led by partner Rohit Chaudhry and associates Ginger Collier and Brian Greene. Additional assistance was provided by partners Marjorie Glover and Robert Shapiro, counsel Scott Bank, Susan Cowell and Christy Rivera, senior consulting attorney Elizabeth Miller, and associates Matthew Harris, Ana Vucetic and Richard Waddington.
Chadbourne was recently ranked as the top global legal adviser for project finance transactions in the first half of 2015 (H1 2015), according to research prepared by IJGlobal. The firm handled US$35.997 billion in transactions, more than 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 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.