Simpson Thacher recently represented the initial noteholders in connection with the $275 million leveraged lease financing of the 67.2-megawatt geothermal power plant in Churchill County, Nevada, a geothermal power project of Terra-Gen Power LLC.
The leveraged lease financing included the issuance of $150 million of 7.00% Series A Lessor Notes due 2033 and $25 million of 6.35% Series B Lessor Notes due 2033 in a Regulation D private placement arranged by BNP Paribas Securities Corp. and Barclays Capital Inc. Additionally, the financing included contributions of $100 million of lease equity and an $11 million letter of credit facility. Terra-Gen Dixie Valley, LLC, has agreed to lease the facility for a term of 28 years.
Terra-Gen Power, an affiliate of Boston energy investment group ArcLight Capital Partners and independent infrastructure investment fund Global Infrastructure Partners, develops renewable energy projects with a focus on wind, geothermal and solar generation.
The Simpson Thacher team included Ken Wyman, Amy Beller, Brett Pearlman, Moiz Ali and Mike Vernace (Credit); Mardi Merjian and Beatie Branch (Real Estate); Michael Isby (Environmental); Moshe Schwerd and Andrew Purcell (Tax); Jamin Koslowe (Executive Compensation and Employee Benefits) and Jonathan Pall (UCC). Paralegal John Oberbeck also provided valuable assistance.