Global law firm White & Case LLP represented Los Esteros Critical Energy Facility, LLC, a wholly owned subsidiary of Calpine Corporation, in connection with the US$373 million financing for the construction and expansion of a natural gas-fired, combined-cycle power generation facility. The expansion, now under construction, will add 120 MW of new capacity to the existing facility in San Jose, California, and is expected to be completed by mid-2013.
The financing, which closed on August 23, 2011, includes US$68 million in letter of credit facilities and US$305 million in construction loans that will convert to 10-year term loans. The credit facilities are being provided by a syndicate of lenders led by Crédit Agricole Corporate and Investment Bank and includes Banco Bilbao Vizcaya Argentaria S.A., New York Branch; Bayerische Landesbank, New York Branch; WestLB AG, New York Branch; CoBank, ACB; Sumitomo Mitsui Banking Corporation; Union Bank, N.A., and Siemens Financial Services, Inc.
The Los Esteros Critical Energy Facility was originally constructed as a 188-megawatt simple-cycle power generation facility and placed in operation by Calpine in 2003. In addition to the increase in capacity, the expansion project will improve the facility’s efficiency and environmental performance.
The deal was led by White & Case partner Nandan Nelivigi (Project Finance, New York), with assistance from partners Ray Simon (Tax, New York) and Ian Cuillerier (Capital Markets, New York), as well as associates Jeannine Acevedo (Project Finance, New York), Anshu Pasricha (Project Finance, New York), Isaac Tendler (Tax, New York), Germaine Dunn (Project Finance, New York), Daniel Moon (Corporate, New York), Isaac Botier (Corporate, New York) and Claire Hall (Bank Finance, Los Angeles).
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