Holland & Knight Represents Oak Creek Energy in the Development, Finance and Sale of Mexico’s Largest Wind Energy Project
NEW YORK (May 13, 2015) – Holland & Knight advised Oak Creek Energy Systems, Inc., a California-based wind projects developer, in the development, project finance and sale of the first two construction-ready stages of its Tres Mesas Wind Project to funds managed by Goldman Sachs and Corporativo GBM. The transaction closed on March 31.
The Tres Mesas Wind Project is a 148.5 megawatt wind energy project in Tamaulipas, Mexico. As a result of the sale, the purchasers, GS Infrastructure Partners (GSIP) and GBM Infraestructura (GBMI), will sponsor the project’s continuing development and construction. Oak Creek Energy, in partnership with GSIP and GBMI, will continue to support the project through its Mexican operating company, Oak Creek de México. Sigma Alimentos, a subsidiary of Mexican company Alfa, and Walmart de México have committed to purchase electricity generated from the Tres Mesas parks.
As part of the transaction, Overseas Private Investment Corporation (OPIC) and North American Development Bank (NADB) will provide senior debt financing. OPIC will fund an $81 million loan for the 62.7 megawatt Phase 1 and up to $105 million for the 85.8 megawatt Phase 2. NADB will provide an approximately $55 million loan for Phase 2.
The representation of Oak Creek Energy in this multilayered transaction was handled from start to finish by Holland & Knight’s Mexico office. The team was led by partners José Antonio Prado and Alejandro Landa Thierry and included senior counsel Carlos Ochoa and associates Adrián Cabrero, Aldo González, Armando Figueroa, Aline Silva, Rodrigo Piñeiro, José Luis Villareal and Carlos Muskus.
"Our team is proud to play a role in one of the most important sustainable energy projects in Mexico," said Mr. Prado. "The amount of transactional, regulatory and financing work on this deal was considerable, but our team has strong experience in the energy sector, which helped us immensely."