Latham Advises Terra-Gen in the Project Financing and Tax Equity Financing for the Second Phase of Edwards Sanborn Project

Terra-Gen, LLC, a leading independent renewable energy provider, has completed its financing on the second phase of its Edwards Sanborn Project in Kern County, California, a solar and battery storage project that will produce clean energy for more than 164,000 homes and displace more than 320,000 tons of CO₂ annually. This phase of the Edwards Sanborn Project is composed of 410 MWac of nameplate solar capacity and 1,786 MWh of battery storage. The first phase of the Edwards Sanborn Project, which Latham also advised on, reached financial close in July 2021 and its 345 MW of PV and 1,505 MWh of storage are now fully operational.

The financing for the second phase includes a tax equity commitment from a consortium of investors and, on the debt financing transaction, US$959 million senior secured credit facilities comprising a US$460 million construction and term loan facility, a US$403 million tax equity bridge facility, and a US$96 million construction and revolving letter of credit facility.

Latham & Watkins LLP represented Terra-Gen in its project financing and tax equity financing with a team led by New York partners Warren Lilien and Kelly Cataldo. Advice was provided on transactional tax and tax equity matters by New York partner Eli Katz and Houston partner Jim Cole. Assistance on debt financing matters was provided by New York associates Kailash Gupta and Josh Ryu, and on the tax equity financing by New York associate Deborah Ogali.