Morrison & Foerster advised Oak Creek Energy Systems, Inc., a pioneering developer of utility scale wind energy projects, on the sale of the first two construction-ready stages of the Tres Mesas Wind Project, a 148.5 megawatt wind energy project in Tamaulipas, Mexico, to an affiliate of GS Infrastructure Partners (GSIP) and GBM Infraestructura (GBMI).
The equity investment by GSIP and GBMI is expected to support and complete construction of Phases 1 and 2 of the Tres Mesas Wind complex, representing one of the largest sustainable energy projects in Mexico to date. Sigma Alimentos, a subsidiary of ALFA, and Walmart de México have committed to power purchase agreements with the project companies. In partnership with GSIP and GBMI, Oak Creek Energy will continue to support the projects through its Mexican operating company, Oak Creek de México, pursuant to construction and long term project management contracts.
As part of the transaction, which closed on March 31, 2015, Overseas Private Investment Corporation (OPIC) and North American Development Bank (NADB) have agreed to provide senior debt financing. OPIC will fund a USD 81 million loan for the 62.7 megawatt Phase 1 through U.S. capital markets issuance of “green guaranties” (assets adhering to the Green Bond Principles), and will fund up to USD 105 million equivalent for the 85.8 megawatt Phase 2 in its first Mexican peso denominated loan through the issuance of Certificates of Participation purchased by Banco Mercantil del Norte (Banorte). NADB will provide a peso loan to Phase 2 for approximately USD 55 million.
MoFo partner Jeffrey Chester, who has been lead attorney on a number of recent major wind and solar transactions led the team on behalf of Oak Creek Energy. Los Angeles of counsel Elizabeth Sluder and associates Julia Balas and Huilin Wang; San Francisco of counsel Michael Ginsburg; and New York visiting international attorney Diana Rosales also worked on the deal.
See Oak Creek Energy’s press release for more information.