March 28, 2017

Milbank Advises International Lenders/Investors in $700 Million Financing of Electric Power Facility in Pennsylvania

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New CPV Fairview Energy project in Johnstown, PA will deliver 1050 MW of natural gas/ethane electric power; Milbank represents broad group of lenders, note holders and agents in multi-tranche project funding

In a multi-tranche power financing in the US, Milbank, Tweed, Hadley & McCloy LLP has represented a group of lenders, note holders and agents funding construction of a new natural gas and ethane electric generation facility located in western Pennsylvania.

The CPV Fairview Energy Project, a combined cycle facility that is expected to generate 1050 megawatts of energy, will be located on a 30-acre site in Johnstown, PA, part of Jackson Township in Cambria County. The transaction was sponsored by Competitive Power Ventures, Osaka Gas and GE Capital.

The project will draw on $700 million in financing with multiple layers – including a variable rate tranche initially led by BNP Paribas, Credit Agricole, CIT Bank, Industrial and Commercial Bank of China Ltd., National Australia Bank, MUFG, Commonwealth Bank of Australia, and DNB Markets, Inc., a fixed rate bank tranche led by Industrial Bank of Korea, and a fixed rate note tranche placed in the institutional market. A letter of credit facility and working capital facility was also part of the variable rate financing.

Milbank has previously advised lending groups on several other energy-related financings for sponsor Competitive Power Ventures, considered one of the largest developers/managers of natural gas-fired generation in North America. The company manages more than 4,800 megawatts of generation facilities in the US and Canada.

Milbank’s deal team was led by Global Project, Energy and Infrastructure Finance partners Daniel Michalchuk and William Bice and associates Michael Evry and Aqsa Mahmud.

“We’re pleased to have played a key role helping structure a multi-tiered financing package that brings together a well-known sponsor group and a diverse lender and noteholder group for another successful deal in the merchant power sector,” Mr. Michalchuk said.

Mr. Bice added: “Its noteworthy how well this financing drew from several, vastly different sources of financing. The alliance of this large, international funding group is indicative of the confidence that lenders and long-term investors have in the PJM capacity market for power generation.”