Morrison & Foerster is advising independent renewable energy company Apex Clean Energy, which announced it has reached financial close of a $397 million construction loan for the 299 MW Kay Wind Project in Kay County, Oklahoma.
Bayerische Landesbank, New York Branch and Rabobank, New York Branch acted as the Joint Lead Arrangers, Coordinating Lead Arrangers and Joint Bookrunners for the transaction. Additionally, Canadian Imperial Bank of Commerce, New York Branch, Commerzbank AG, New York Branch, KeyBank National Association, and Siemens Financial Services, Inc. acted as Joint Lead Arrangers. Rabobank is the Administrative Agent, Collateral Agent and LC Issuing Bank.
Apex Clean Energy believes that Kay Wind is expected to generate about $2.3 million per year in tax revenues for local counties and school districts, $2 million per year in royalty payments to local landowners, 150 local jobs during construction, and more than a dozen high-quality long term jobs throughout operations.
Apex secured long-term power purchase agreements with Westar Energy and GRDA for Kay Wind, which will utilize 130 Siemens 2.3-MW turbines. Upon completion, Southern Company subsidiary Southern Power expects to acquire the project from Apex. Apex will provide comprehensive asset management services led by an on-site operations team and supported by Apex’s remote operations control center located in Charlottesville, Virginia.
MoFo also represented Apex in its agreement for the sale of the Kay Wind Project to Southern Company subsidiary Southern Power. With the addition of the Kay Wind project, Southern Power will own more than 970 MW of renewable energy generating capacity that is either already in operation or under development. The company owns seven solar projects in partnership with Turner Renewable Energy and one solar project in partnership with First Solar.
MoFo partner Jeffrey Chester, who has been lead attorney on a number of recent major wind and solar transactions including Apex’s sale of the 300 MW Balko Wind Project to DE Shaw Renewable Investments, led the team on behalf of Apex. New York partner Jana Mansour; Los Angeles of counsel Elizabeth Sluder and associates Julia Balas and Huilin Wang; San Francisco of counsel Michael Ginsburg; Washington, D.C. of counsel Zori Ferkin and associate Michael Sorrell; San Diego associate Shane Shelley; and Northern Virginia associate Christina Valencia also worked on the deal.