The cross-sector Energy team at Wragge Lawrence Graham & Co has advised established client Grid Essence on the sale of a portfolio of eight solar PV parks, which have an overall energy production capacity of 53MW, and the subsequent refinancing of the projects.
The first phase of the deal (which completed on 21 April 2015) involved the sale of the portfolio of solar parks to Capital Stage, a German publicly-listed solar and wind park operator, for £67.7 million.
Subsequent to the sale, seven parks (with a combined capacity of 45.27MW) were refinanced, by way of a £40 million solar note issue by TRFC 2014-plc, to Legal & General Investment Management Infrastructure. The issue date for the listed bonds was 5 May. The notes have been listed on the debt capital market of the London Stock Exchange.
Partner David Ponsford, who led on the transaction, said: "We are extremely pleased to have successfully closed on the sale of these solar projects for Grid Essence and on the listed refinancing. What we are seeing here is clear evidence that, given the right deal structure, investors are increasingly keen to back renewable energy projects and to look at alternative forms of debt financing. In this case, refinancing by way of listed notes is an unusual and imaginative financing solution that served our client's best interests."
The complexity of the transaction required a large, cross-practice team working on numerous aspects of the sale of the projects and the subsequent refinancing.
David Ponsford headed up a team of corporate and project finance advisers. Senior associate Meera Unadkat advised on the corporate aspects, while principal associate Erika Pircher-Eschig advised in relation to the refinancing together with associate Claudine Raffray. Partner Jonathan Brufal advised on projects aspects, assisted by principal associate James Bruce and senior associate Tom Gray. Real estate matters were handled by partner Lee McBride, senior associates Elizabeth Napier and Amy Tabari, and associate Caroline Frost.
The combined team negotiated all the finance documents, prepared certificates of title for each project site and supported Grid Essence extensively in connection with the lender due diligence process.
This is one in a series of significant transactions Wragge Lawrence Graham & Co has completed in the solar arena this year.
Grid Essence CEO Josef Barr added: "We are delighted with the completion of the sale and refinancing of these solar parks. Once again the team at Wragge Lawrence Graham & Co has demonstrated that it has the necessary specialist solar expertise and commitment to successfully complete complex solar PV transactions."
Pinsent Masons advised Capital Stage. Norton Rose Fulbright advised the financial arranger and book runner, while Clifford Chance advised the incoming lender.
The 70-strong Energy team, named 'firm of the year' in the regional 'Projects, energy and natural resources' category in Legal 500 2013, has an industry-leading reputation in the UK and international energy transactions, structured financing, regulation, transactional energy work and energy trading.
