Simpson Thacher recently acted as U.S. counsel to WindMW GmbH (“WindMW”), a Blackstone portfolio company, in connection with a €978 million nine-tranche U.S. dollar and euro-denominated project bond offering that had a weighted average interest rate of just below 3%. The net proceeds from the U.S. Dollar tranches were swapped back into euros to pay back bank loans secured against WindMW’s 80 turbine wind farm.
The deal was comprised of $438.57 million 5.02% Series A Notes due 2027; €88 million 3.59% Series B Notes due 2027; €95 million 2.125% Series C Notes due 2021; €75 million 2.125% Series D Notes due 2021; €139 million 2.125% Series E Notes due 2021; €92 million 2.125% German “Schuldschein” due 2021; €25 million 2.125% Registered German Notes due 2021; and €58.3 million 3.59% Registered German Notes due 2027. The Notes are secured by a first priority lien, subject to exceptions, on WindMW’s existing and future property and assets, including its turbines.
WindMW GmbH is a developer, owner, and operator of Meerwind Süd I Ost, a 288 MW operating offshore wind farm located in the German North Sea.
The deal is thought to be the largest ever renewable energy project bond and the largest ever European project bond.
The Simpson Thacher team included Ed Tolley, Karen Wang and Kevin Elliott (Capital Markets); Ken Wyman, Amy Beller and Brandan Still (Credit/Project Finance); Joyce Xu, Solomon Bashi and Lihua Chen (Derivatives); Jonathan Cantor and George Davis (Tax); and Aimee Adler and Joo Hyun Lee (Executive Compensation and Employee Benefits).