Chadbourne & Parke LLP represented the lenders on the financing of the US$1 billion combined-cycle Salem Harbor Power Station in Salem, Massachusetts. The financing includes US$600 million term loan, a US$130 million letter of credit facility, and approximately US$377 million in equity financing. The Coordinating Lead Arrangers for the financing were MUFG Union Bank, GE Energy Financial Services and BNP Paribas.

Highstar Capital IV, L.P. and its affiliated funds managed by Oaktree Capital Management, L.P., will invest 87.5% of the construction equity and an affiliate of Toyota Tsusho Corp. will invest the remaining 12.5% of the construction equity. The project was developed by Footprint Power.

Salem Harbor is the first project to be a complete tear down of an existing coal-fired plant in a non-regulated market. The project is to be constructed by Iberdrola Energy Products with turbines supplied by General Electric. The project received a capacity award for a five-year period under the seventh Forward Capacity Award conducted by ISO-NE in February 2013.

“We are delighted to have represented the lenders in this transaction,” said Rohit Chaudhry, co-head of Chadbourne’s Project Finance practice. “This project faced many roadblocks throughout the process. Chadbourne has supported this project for the last two years by first representing development lenders on two separate development loans and now the senior lenders on this financing.”

The Chadbourne team working on the project included Rohit Chaudhry, Noah Pollak, Bob Shapiro, Sue Cowell, Donna Bobbish, Scott Bank, Elizabeth Miller, Monika Szymanski, Tracy Horton, Jason Keating, Rachel Rosenfeld, Michael Masri and Malgorzata Soltys.