Energy and Project Finance

Due to rising demand and increasing prices, energy companies and stakeholders worldwide are looking for investment opportunities in the energy and natural resources sectors.  With 60 lawyers located across the United States, as well as in Hong Kong, London, Milan, Moscow, Paris, Rome and Tokyo, Orrick's Energy and Project Finance Group has the in-depth energy industry knowledge to advise our clients in this constantly changing sector. 

Orrick has been recognized by numerous legal and industry publications in the project finance, energy and infrastructure sectors. Orrick recently won the International Financial Law Review (IFLR) Americas Award for "Project Finance Team of the Year" for 2007.  In addition, Orrick has been recognized among the leading law firms by Chambers USA: America's Leading Lawyers for Business and Chambers Global: The World's Leading Lawyers for Business as well as The Legal 500, and a number of our lawyers have advised on projects lauded as "Deals of the Year" in various industry publications such as Project Finance, International Financial Law Review, Asset Finance International and Trade Finance. As a result, clients call on us to handle their most important transactions.

Energy

Orrick's energy clients encompass every segment of the industry, including investor-owned utilities (IOUs), municipal utilities, co-ops, independent power producers and merchant generators, underwriters, investment bankers, lenders and other stakeholders.  We regularly represent clients in mergers and acquisitions, financial restructurings, asset divestitures and acquisitions, equipment leasing, renewable energy project development, new plant development and financing, and regulatory proceedings.  Our experience also includes transactions involving export credit agencies and multilateral finance agencies, important sources of financing in many transactions outside of the United States. 

We have played key roles in restructuring the California electric industry, while lawyers in our Europe and Asia offices have been at the forefront of major energy developments.  We have advised on such matters as the restructuring of the U.K. electricity supply industry, the first project financings for energy projects in Russia and the first ever limited recourse project financing in China.

Orrick's renewable energy lawyers are among the most experienced in the world, and they are very active in the rapidly expanding wind development efforts in the United States, Europe and Asia in addition to other renewable technologies, such as solar power, ethanol and biomass projects. 

Infrastructure

As governmental entities seek alternative means of funding the expansion and renovation of essential infrastructure, they turn to project finance and innovative hybrid public and private debt financing.  Lawyers in Orrick's energy and project finance practice have played a key role in infrastructure finance worldwide.  We represent participants in numerous infrastructure development projects, including telecommunications systems, industrial facilities, water systems, hospitals, toll roads, stadiums and aquariums. 

Orrick's involvement in U.S. infrastructure finance is extensive, and our work has included the financing of the Golden Gate Bridge, the San Francisco International Airport, the Bay Area Rapid Transit System and JFK and Newark airports.
We have worked on behalf of export credit agencies and multilateral development banks as well as commercial banks to finance projects across Eastern Europe as well as the Middle East and Africa.  Our lawyers have advised on a number ground-breaking infrastructure transactions in China, including the first application of a build-operate-transfer structure for a water plant and one of the largest project financings ever.
A key to the success of our infrastructure practice is the strength of our Public Finance Group, as many infrastructure projects are funded using a combination of public and private debt.  Orrick lawyers from our various practice areas work together to provide the best skills available for infrastructure project development.  

Recent Engagements

In 2005, our Energy and Project Finance Group handled noteworthy matters across a range of industries. The group regularly represents clients in project financings, mergers and acquisitions, financial restructurings, equipment leasings, wind power projects, new plant developments and financings, and regulatory proceedings. This work included the representation of:

• Banco Santander Central Hispano, S.A., Calyon Corporate and Investment Bank, Banco Bilbao Vizcaya Argentaria, S.A. and DEPFA BANK PLC (United States). Banco Santander Central Hispano, S.A., Calyon Corporate and Investment Bank, Banco Bilbao Vizcaya Argentaria, S.A. and DEPFA BANK plc as mandated lead arrangers in connection with the $1.2 billion financing of the Cintra/Macquarie Infrastructure Group's joint purchase of a concession for the Chicago Skyway, a 7.8-mile, six-lane toll bridge from the I-90 Indiana Toll Road on the Illinois-Indiana state line through Chicago. The purchase closed in January 2005 and was recognized as the "North America Transport Deal of the Year" for 2004 by Project Finance. Orrick later represented the mandated lead arrangers for the structurally subordinated debt placed upon the bond refinancing in August 2005, which was recognized as the "2005 North America Project Bond Deal of the Year" by Project Finance.
• Calyon (France). Calyon as arranger and a syndicate of banks, which included BNP Paribas and La Caisse Nationale des Caisses d'Epargne et de Prévoyance, in an €840 million financing for the construction of two new cruise vessels. The financing utilized an export credit facility as well as a French tax lease and was the largest French tax leasing transaction in 2005.
• Green Power Investment Corporation (Japan). Green Power Investment (GPI), a Japanese company, which was established with Orrick's assistance as an investment vehicle for wind energy projects in Japan and throughout the world. Orrick also represented GPI in an initial financing round with Giuliani Partners LLC and Sage Capital Global, both private equity fund investors, and
  in a second round financing with the prominent Japanese investors Mitsubishi Corporation, Sumitomo Trust Bank
  and Sumisho Leasing Company. The financing proceeds were used to acquire several hundred megawatts of
  potential wind energy project assets in Japan.
• Nomura Credit & Capital Inc. (United States). Nomura in a groundbreaking $2 billion mortgage warehouse facility financed through the issuance of commercial paper by Citibank-sponsored conduits. The structure was designed to realize the benefits of a repurchase agreement under revisions to the U.S. Bankruptcy Code. Citibank committed to purchase eligible mortgage loans for an aggregate price of up to $2 billion from time to time, and Nomura may remove loans from the arrangement at any time, subject to specified collateral coverage requirements.
• Pacific Gas and Electric Company (United States). Acquisition of a 530 MW combined cycle power plant in the early development stage. This project is unique because it is designed to operate using the cooling water system of existing units retained by the seller.