Back-Leverage Financing for Renewable Energy Projects: Key Considerations for Energy Counsel, Lenders and Tax Equity Investors

Note: CPE credit is not offered on this program

Recording of a 90-minute premium CLE webinar with Q&A


Conducted on Wednesday, August 26, 2020

Recorded event now available

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Program Materials

This CLE webinar 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.

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.

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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?

Faculty

Berger, James
James M. Berger

Partner
Norton Rose Fulbright US

Mr. Berger represents sponsors, lenders, equity investors and government agencies in connections with the financing and...  |  Read More

Rosenberg, Amanda
Amanda L. Rosenberg

Partner
Norton Rose Fulbright US

Ms. Rosenberg's practice focuses on federal income tax law, with a particular emphasis on renewable energy...  |  Read More

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