California, United States [RenewableEnergyWorld.com] Milbank, Tweed, Hadley & McCloy LLP announced that despite the ongoing turmoil in the global financial markets construction and term financing of the 100-megawatt (MW) Phase II Mount Storm wind project closed on September 26. The firm represented the joint lead arrangers, Fortis Capital Corp. and Banco Bilbao Vizcaya Argentaria, S.A.
Milbank represented the same joint lead arrangers in the closing and syndication of the US $185 million construction and term financing of the 164 MW Phase I of the wind project. The Phase I construction financing closed in October 2007 and was successfully term-converted on September 30, 2008.
“The global financial crisis posed formidable challenges to completing the transaction as credit committees of the banks participating in the financing demanded additional comfort before agreeing to lend,” said Edward Kayukov, a project finance partner for the firm. “The credit crisis coupled with the dearth of tax equity will continue to pose significant difficulties for the renewable energy sector in the coming months.”