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Lawson Lundell represents Concord Pacific on its first renewable energy project
On April 21, 2010 Concord Pacific completed the financing for its Red Lily Wind Energy Project located in south-eastern Saskatchewan. The project is a 26.4 MW project comprised of 16 Vestas wind turbines, the purchase of which was also completed in connection with the financial close. The project is owned by Red Lily Wind Energy Partnership, which was acquired by Concord Pacific in January, 2010. Concord Pacific contributed approximately $19 million in equity for the project, while senior lenders and subordinated lenders put in approximately $42 million and $6 million respectively. Algonquin Power is both a senior and subordinated lender, and pursuant to various service contracts will manage the development and construction of the project on behalf of the Partnership and will operate the project on behalf of the Partnership upon completion. Algonquin Power also has an option to acquire a 75% interest in the Partnership five years following commissioning of the project. The project is expected to achieve commercial operation by early 2011, and may ultimately be expanded by another 106 MW.
The transaction involved the negotiation of numerous substantive transaction agreements among various combinations of the Partnership, the partners, Algonquin Power, the other lenders, Vestas and the original developers, including Gaia Power Inc., respecting the initial acquisition, financing, turbine supply, and project construction and operation. Concord Pacific was represented by a team from Lawson Lundell which included, Mandeep Dhaliwal (banking and debt financing), and Brian Fulton (commercial).
We would like to congratulate our client Concord Pacific on the completion of its first investment in a renewable energy project, and wish them every success with this exciting project.