April 7, 2015

Milbank Advises Japanese Power Company Chubu Electric in $899M Financing for Energy Project in Ohio

Share

Chubu Electric and partners proceed with investment in 700 MW Carroll County Energy project, scheduled to generate power for 750,000 homes; Milbank partners Aled Davies and John Franchini led deal team on behalf of Chubu

Milbank, Tweed, Hadley & McCloy LLP advised Japan-based electricity utility Chubu Electric Power Co., Inc. in its acquisition of an interest in a state-of-the-art 700 megawatt electricity generating plant to be constructed in northeastern Ohio.

Milbank partners Aled Davies out of Milbank’s Tokyo office and John Franchini out of Milbank’s New York office, and Senior Associates Daniel Lin (Tokyo) and John Timmermann (New York), led the deal team on behalf of Chubu Electric, which, together with TIAA-CREF, Ullico Inc., and Prudential Capital, have committed to contribute $411 million in equity to the project.

In addition to the equity commitments, BNP Paribas, Crédit Agricole Corporate and Investment Bank, and a syndicate of eight other commercial banks will provide $488 million in senior secured credit facilities to finance construction of the facility.

The new plant, known as the Carroll County Energy project, will be operated by EthosEnergy and will feature two gas turbines and a steam turbine which together will be capable of generating power to 750,000 homes in the regional energy market.

Carroll County Energy’s location near the Marcellus and Utica shale formations as well as ease of access to existing high-voltage transmission lines and the Tennessee gas pipeline system are considered important competitive advantages for the new facility.

Mr. Davies, a Project Finance partner based in Tokyo, and Mr. Franchini, a Corporate Power and Energy partner based in New York, were also assisted by Project Finance associate Mindy Allen, of the Tokyo office; and associate Broderick Henry, of the Corporate group in New York.

About Milbank

Milbank, Tweed, Hadley & McCloy LLP is a leading international law firm that has been providing innovative legal solutions to clients throughout the world for nearly 150 years. Milbank is headquartered in New York and has offices in Beijing, Frankfurt, Hong Kong, London, Los Angeles, Munich, São Paulo, Seoul, Singapore, Tokyo and Washington, DC.

The firm’s lawyers provide a full range of legal services to the world’s leading commercial, financial and industrial enterprises, as well as to institutions, individuals and governments. Milbank’s lawyers meet the needs of its clients by offering a highly integrated and collaborative range of services across key practice groups throughout its global network. Milbank’s integrated practice is underpinned by its attorneys’ acknowledged technical excellence, sectorial experience and a strong tradition of innovation and client service.