In a noteworthy renewable energy transaction, Milbank, Tweed, Hadley & McCloy LLP has represented Bank of Tokyo Mitsubishi UFJ, Mizuho Bank, Ltd. and Sumitomo Corporation of America in connection with project financing for a 200 megawatt Mesquite Creek Wind (MCW) Project being developed in Texas by Sumitomo Corporation of America.
Sumitomo acquired the MCW Project from the original developer BNA Renewable Energy. The Mesquite Creek wind farm is a 118-turbine facility currently under development across 25,000 acres near Lamesa, Texas. BP Energy will provide a seven year energy hedge and Mars will provide longer term offtake arrangements. Mars will receive all of the renewable energy certificates generated by the project.
The project is expected to produce over 800,000 megawatt hours annually, enough energy to power all of Mars' US operations - comprised of 70 total sites, including 37 factories. It will also represent approximately 24% of Mars' total global factory and office carbon footprint.
Development of the wind farm began in 2008. Delivery of General Electric turbines are scheduled to begin by the end of this coming summer, with operations expected in the second quarter of 2015. The project will accelerate Mars' goal of cutting its global greenhouse gas and fossil fuel emissions by nearly one quarter by the end of next year.
Leading Milbank's representation of the lenders is New York partner Eric Silverman, who co-chairs the firm's Energy/Projects practice and has advised on a wide range of renewable energy projects. Other Milbank attorneys working on the MCW transaction were tax partner Mark Regante, along with real estate of counsel Bruce Gardner, regulatory advisor Jim Liles, and associates, Danielle Hunt, and Kim Timko.
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