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  • videocam On-Demand
  • signal_cellular_alt Intermediate
  • card_travel Energy
  • schedule 90 minutes

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

$347.00

This course is $0 with these passes:

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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 the challenges of structuring back-leveraged financing transactions, the impact on tax equity partners, protections for lenders, and other critical items for financing renewables.

Presented By

Rebecca Abou-Chedid
Partner
Norton Rose Fulbright, LLP

Ms. Abou-Chedid's practice focuses on the representation of public and private entities in domestic and international project finance and energy projects.

David K. Burton
Partner
Norton Rose Fulbright, LLP

Mr. Burton advises clients on a wide range of U.S. tax matters, with a particular emphasis on project finance and energy transactions. In addition, he also advises clients on tax matters regarding the formation and structuring of domestic and offshore investment funds. He has extensive experience structuring tax-driven vehicles, such as sale-leasebacks, flip partnerships, inverted leases and other structures, for the acquisition and financing of renewable energy assets.

James C. Schulwolf
Partner
Shipman & Goodwin LLP

Mr. Schulwolf is a partner in Shipman's Business and Corporate Practice Group.  He focuses his practice on advising clients in financing, investment, acquisition, and restructuring transactions.  In the Finance sector, Mr. Schulwolf regularly represents financial institutions including banks, mezzanine funds, and other institutional investors in structuring, documenting, and closing complex senior and mezzanine financings, including mezzanine financings with equity co-investments.  He regularly represents lenders in connection with acquisition financings, financing of alternative energy projects (including wind, solar, and fuel cell projects), asset-based loans, cash flow loans, and syndicated credit facilities and he also represents Shipman's corporate clients and private equity portfolio companies in their financing transactions.

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


  • Live Online


    On Demand

Date + Time

  • event

    Tuesday, March 25, 2025

  • schedule

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

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

The panel will review these and other key issues:

  • What is the typical structure and what are the challenges for back-leverage debt financing?
  • How operating agreements for tax equity partnerships are drafted to minimize investment tax credit recapture in a foreclosure scenario and protect the tax equity investor from suffering any recapture cost
  • 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?