Milbank, Tweed, Hadley & McCloy LLP advised Japan-based electricity utility Chubu Electric Power Co., Inc. in its acquisition of an interest in a state-of-the-art 700 megawatt electricity generating plant to be constructed in northeastern Ohio.
Milbank partners Aled Davies out of Milbank’s Tokyo office and John Franchini out of Milbank’s New York office, and Senior Associates Daniel Lin (Tokyo) and John Timmermann (New York), led the deal team on behalf of Chubu Electric, which, together with TIAA-CREF, Ullico Inc., and Prudential Capital, have committed to contribute $411 million in equity to the project.
In addition to the equity commitments, BNP Paribas, Crédit Agricole Corporate and Investment Bank, and a syndicate of eight other commercial banks will provide $488 million in senior secured credit facilities to finance construction of the facility.
The new plant, known as the Carroll County Energy project, will be operated by EthosEnergy and will feature two gas turbines and a steam turbine which together will be capable of generating power to 750,000 homes in the regional energy market.
Carroll County Energy’s location near the Marcellus and Utica shale formations as well as ease of access to existing high-voltage transmission lines and the Tennessee gas pipeline system are considered important competitive advantages for the new facility.
Mr. Davies, a Project Finance partner based in Tokyo, and Mr. Franchini, a Corporate Power and Energy partner based in New York, were also assisted by Project Finance associate Mindy Allen, of the Tokyo office; and associate Broderick Henry, of the Corporate group in New York.
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