Orrick advised Cube Hydro Partners, LLC (“Cube Hydro”) on the issuance by its wholly owned subsidiary, Cube Hydro North America I, LLC, of US$140 million senior secured notes due October 2025 (the “Notes”). The Notes were placed through a private placement launched on September 15, 2015 and were priced at a 4.75% coupon.
Cube Hydro, a portfolio company of the ISQ Global Infrastructure Fund and its affiliated funds, was founded in January 2014 to develop, acquire and operate a platform of small to mid-sized hydropower plants located in North America, primarily in the United States.
Cube Hydro currently owns a portfolio of thirteen hydroelectric plants with a capacity of 106 megawatts located in New York, Pennsylvania, Virginia and West Virginia with expected annual generation of over 340,000 MWhs. Prior to the issuance of the Notes, the portfolio was funded nearly 100 percent with equity. Cube Hydro will use the proceeds from the Notes to optimize its existing capital structure, fund business requirements and return capital to its equity owners.
The Orrick team advising on the transaction was led by energy and infrastructure partner Tara Higgins and capital markets of counsel Stephen Ashley. Other members of the Orrick team included David Avila, Kenneth Marx and John Grant.