NEW YORK, October 20, 2010 – The international law firm Milbank, Tweed, Hadley & McCloy LLP, led by Global Project Finance partner Bill Bice, represented the lenders in a $650 million construction and permanent financing to Mirant Marsh Landing, LLC for the Marsh Landing Generating Station in Antioch, California. RBS Securities Inc., RBC Capital Markets and WestLB AG, New York Branch acted as Joint Bookrunners. The credit facility includes approximately $500 million of construction and term debt and $150 million of letter of credit facilities. The Marsh Landing Generating Station will be a 760 MW natural gas-fired peaking facility located adjacent to Mirant’s existing Contra Costa Generating Station, and will utilize existing gas and electric transmission infrastructures. The project is fully contracted, with PG&E purchasing all capacity and energy from the project for ten years following commercial operation pursuant to a Power Purchase Agreement.
“This project perfectly illustrates the important role that new gas-fired capacity can play in today’s power space, where there remains a need for reliable peaking capacity amidst the recent build-out of renewable power resources in California,” commented Mr. Bice.
Mirant Marsh Landing, LLC is a subsidiary of Atlanta-based Mirant Corporation (NYSE:MIR), an energy company that produces and sells electricity in the US. Construction on the project is scheduled to begin later this year and is estimated to be completed by mid-–. The total cost of the station is calculated to be approximately $700 million.
Additional Milbank attorneys involved in this transaction include partners David Lamb (Global Corporate, Los Angeles), Lewis Putman (Global Corporate, Washington, DC), senior associate Daniel Michalchuk (Global Project Finance, New York), and associates Douglas Kim (Global Project Finance, New York) and Sarah Glenn (Global Project Finance, New York). James Liles also advised on regulatory matters.
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.