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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

  • work Practice Area

    Energy

Date & Time
  • event Date

    Wednesday, August 26, 2020

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00

This CLE course will guide renewable energy counsel and lenders on back-leverage financing options and structuring considerations for energy projects. The panel will discuss critical issues relating to structuring back-leveraged financing transactions, the impact to tax equity partners, protections for lenders, and other crucial items to financing.

Faculty

Berger James
Shareholder
Norton Rose Fulbright, LLP

Mr. Berger represents sponsors, lenders, equity investors and government agencies in connections with the financing and development of energy projects, with an emphasis on renewable energy. He also has experience with the organization and operation of a wide variety of private equity funds.

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Rosenberg Amanda
Shareholder
Willkie Farr & Gallagher, LLP

Ms. Rosenberg's practice focuses on federal income tax law, with a particular emphasis on renewable energy investment, energy tax credits, government incentive programs and domestic and international project finance transactions. She also has extensive experience on CFIUS filings for foreign acquisitions of US companies and projects.

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Description

Renewable energy projects face unique challenges in financing construction and operations. To match the demands of secured permanent debt and tax equity investments, back-leverage debt structures can provide necessary capital but must be carefully crafted.

In a back-leverage structure, debt financing is provided by lenders to a holding company that owns a controlling interest in a tax equity partnership, which owns the owner of the project assets. If structured correctly, this allows for the sole collateral securing the debt to remain on the developer or sponsor side of equity interests in the partnership allowing for tax equity investors to remain the structurally senior financing party.

Renewable energy counsel structuring these transactions must consider cash flow waterfall and diversion issues, transfer restrictions, foreclosures, project letters of credit, and other vital matters.

Listen as our panel discusses challenges of structuring back-leveraged financing transactions, the impact to tax equity partners, protections for lenders, and other critical items for financing renewables.

Outline

  1. Back-leverage financing structures
  2. Cash waterfall and diversion
  3. Foreclosure
  4. Key considerations for developers, lenders, and tax equity investors

Benefits

The panel will review these and other key issues:

  • What is the typical structure and challenges for back-leverage debt financing?
  • Collateral and critical issues stemming from tax partnership agreements
  • What are the key issues relating to cash flow?
  • What terms should be negotiated concerning transfers of interest?
  • What are the key considerations relating to letters of credit?
  • What are best practices and pitfalls to avoid for developers, lenders, and investors?