LOS ANGELES, December 17, 2010 – The international law firm Milbank, Tweed, Hadley & McCloy LLP, led by Global Project Finance Group partner Karen Wong, Global Securities Group partner Paul Denaro and Global Project Finance Group co-chair Jonathan Green, represented joint lead arrangers Citi, Bank of Tokyo-Mitsubishi UFJ, Ltd., RBS Securities and WestLB Securities, Inc. in a $1.3 billion financing package for the Shepherds Flat wind project developed by Caithness Energy LLC and GE Energy Financial Services and located near Arlington, Oregon. The loan carries an 80 percent guarantee from the U.S. Department of Energy (DOE). The Shepherds Flat wind project is only the sixth clean energy project to complete a loan guarantee offer supported by federal stimulus money and the largest project to date. Once completed, the 338-turbine, 845-MW wind farm will cover 30 square miles and is projected to be the largest land-based wind project in the world. Milbank also represented the private placement institutional lenders in the transaction.
“The construction of this landmark project is expected to create more than 400 jobs, and once completed, will position Oregon as a clean energy leader,” said Ms. Wong.
Mr. Green further commented, “Renewable investments like this project promote the United States’ global competitiveness in clean energy.”
The final debt package consisted of $525 million in fixed rate privately placed bonds, $675 million in floating rate loans and $230 million of letters of credit. The sponsor contributed roughly $700 million in equity. All of the power and renewable energy credits from Shepherds Flat will be sold to Southern California Edison Co. through a 20-year power purchase agreement. The wind project is expected to be completed in 2012.
Additional Milbank attorneys involved in this transaction include Alternative Investments Practice partners Trayton M. Davis and Eric K. Moser, Tax Department partner Mark L. Regante, Global Project Finance Group associates Christopher Chwang, Douglas Y. Kim, Jeffrey M. Leider and Sally Huang, and Global Securities Group associates Trevor K. Truman and Michael Lee.
About Milbank
Milbank, Tweed, Hadley & McCloy LLP is a preeminent global law firm that for more than 140 years has provided innovative legal solutions in many of the world’s largest, most complex, “first-ever” corporate transactions and litigation. Our transactional expertise includes capital markets, corporate finance, project finance, acquisition finance and other major fields of law practice. Milbank litigation and arbitration teams resolve disputes involving mergers and acquisitions, proxy battles, financings and securities offerings, intellectual property, white collar crime, and corporate restructurings, among others. Our clients range from prominent multinational financial, industrial and commercial enterprises to governments, institutions and individuals. The firm is headquartered in New York with offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, São Paulo, Singapore, Tokyo and Washington, DC.