Global law firm White & Case LLP represented Russell City Energy Company, LLC, a project company 75%-owned by Calpine Corporation and 25%-owned by an affiliate of GE Energy Financial Services, in connection with the $844.5 million construction financing of a natural gas-fired, combined cycle power generation facility. The 620 megawatt facility – which is under construction in Hayward, CA, and is expected to begin operations in mid-2013 – is the country's first power plant to receive a federal air permit that includes a voluntary limit on greenhouse gas emissions.
The credit facilities consist of construction loans with a term conversion option, a debt service reserve letter of credit facility and a project letter of credit facility. The credit facilities are being provided by a syndicate of lenders led by ING Capital Corporation and Union Bank, N.A. and that includes BMO Capital Markets; Bank of Montreal, Chicago Branch; Lloyds TSB Bank plc; CoBank; ACB; Intesa SanPaolo, S.p.A, New York Branch; WestLB AG, New York Branch; Crédit Agricole Corporate and Investment Bank; Royal Bank of Canada; Siemens Financial Services, Inc.; Banco Bilbao Vizcaya Argentaria S.A., New York Branch; and Bayerische Landesbank, New York Branch.
Calpine is a leading North American power company serving wholesale and industrial customers in the United States and Canada. It owns, leases and operates low-carbon, natural gas-fired and renewable geothermal power plants.
Advising on the deal were White & Case partners Nandan Nelivigi (Project Finance, New York), Michael Shenberg (M&A, New York), Larry Gannon (Project Finance, New York), Ian Cuillerier (Capital Markets, New York), James Cairns (Asset Finance, Los Angeles), Ray Simon (Tax, New York), of counsel Zori Ferkin (Energy Regulatory, Washington, DC) and counsel Amy Delsack (Bank Finance, New York.)
For more information please speak to your local media contact.