April 29, 2009 – LawFuel.com – Chadbourne & Parke represented the lenders on a $534 million financing of two 200 MW peaking power projects in Connecticut.
The deal closed on April 27, 2009.
Nine banks signed up to provide the $534 million to finance the two 200 MW peaking power projects. GenConn Energy, a 50-50 joint venture between NRG Energy, Inc. and The United Illuminating Company, is adding the capacity at NRG’s existing sites in Milford and Middletown, Connecticut.
The financing consists of non-recourse loans to GenConn Energy, as well as equity bridge loans to finance the equity commitments of NRG Energy and The United Illuminating Company.
The Royal Bank of Scotland and Union Bank, as lead arrangers, brought seven other lenders into the deal: Bank of America, BNP Paribas, CoBank, ING Capital, Natixis, TD Bank and WestLB.
“This was a well structured deal with strong sponsors,” said Michael Canavan, Senior Vice President of Power and Utilities at RBS. “Despite the challenges in the credit markets, this deal shows that banks are open for the right deals and key clients.”
Added Jeff Fesenmaier, Vice President of Energy Capital Services at Union Bank, N.A.: “The Chadbourne team was invaluable in quickly reaching agreements on business points, allowing this transaction to close in an expedited time frame.”
“The fact that this financing closed so quickly in such a difficult credit market speaks to the strength of this deal and the dedication and creativity of everyone involved in getting this financing to closing,” said Rohit Chaudhry, the lead Chadbourne partner on the transaction.
The Chadbourne team working on the deal included Rohit Chaudhry, Simon Stevens, Nemika Jha, Andy Giaccia, Sue Cowell, Tom Dupuis, Sarah Friedman, Bob Shapiro, Donna Bobbish, Marissa Alcala, Lynne Gedanken and Marjorie Glover.
Both projects will feature four new fast-start 50 MW General Electric LM 6000 dual-fuel capable combustion turbines. Construction is already underway at NRG’s Devon Station, located in Milford, and is expected to be completed in June 2010.