Power Generation
We have long been one of the premier global legal advisors to the power generation sector representing leading market players, such as energy companies and developers, private equity and hedge funds, and financial institutions. Infrastructure Journal named Milbank “No. 1 Power Legal Adviser” globally in addition to other top energy rankings. We are also recognized for our understanding of wider industry factors and their impact on our clients: market dynamics, commodity cycles and the evolving regulatory environment. Through our involvement as counsel to either the lenders or sponsors in many of the industry’s largest, most complex and high profile transactions, we have established an international reputation for overcoming obstacles and achieving our clients’ objectives.
Our Power Generation expertise includes all types of facilities -- gas, coal, hydro and nuclear power plants -- with a significant concentration on alternative and renewable energy: wind, solar, geothermal, biomass, and newer technologies. In the field of transmission and distribution, we are a leader in the development of independent transmission companies and stand-alone transmission projects.
Recent representative deals include:
North American Infrastructure “Deal of the Year” 2007 (USA) – Trans Bay Cable – Project Finance Magazine
Milbank represented the lenders in the $554 million Trans Bay Cable project, sponsored by Babcock & Brown. The loan consisted of senior (wrapped), subordinated and Holdco debt. The proceeds of the loan will be used to develop, construct and operate a 400 MW HVDC transmission line interconnecting a PG&E substation in San Francisco with a PG&E substation in Pittsburgh, CA.
Global Power “Deal of the Year” 2007 (Oman) – Barka2/Rusail – Project Finance Magazine
Milbank represented the sponsors in the $900 million financing for the acquisition of an existing plant from the Omani government and the development of a new plant. The transaction was the first power deal in Oman since the electricity and water sector was unbundled in May 2005, the first to combine the development of a greenfield IWPP with the acquisition and rehabilitation of an existing power plant and one of the most complex deals financed in the Middle East to date. Despite the immense challenges, the transaction was closed in 70 days.
North American Portfolio Power “Deal of the Year” 2007 (USA) – EIF Calypso – Project Finance Magazine
Milbank represented private equity fund manager Energy Investors Fund (“EIF”) in its purchase, via its United States Power Fund III LP unit, of an 80% stake in 14 power plants from Cogentrix Energy Inc., a unit of Goldman, Sachs & Co. The assets are held in a newly created holding company, EIF Calypso, which was funded by $850 million in loans from Calyon.
North American Single Asset “Deal of the Year” 2006 – Plum Point, USA – Project Finance Magazine
We represented Energy Investors Fund (EIF) as equity investor in connection with the $1.3 billion project financing of the Plum Point coal-fired independent power project, a 665 MW coal-fired electric generating facility in Arkansas.
BostonGen Project (USA)
We represented Credit Suisse and Goldman Sachs as the lead arrangers in negotiating and structuring the $1.2 billion recapitalization of Boston Generating LLC, one of the largest power sector financings in North America.
Korea Electric Power Corporation (KEPCO) (China)
We represented the lead arrangers, KEXIM, Woori Bank and HSBC in KEPCO’s largest direct overseas equity investment in a power project -- the acquisition financing for a power generation and coal joint venture in Shanzi, China. KEPCO’s total investment was $443 million.