Covington Advises Borrego Solar in Financing Transaction
3/1/2012
SAN FRANCISCO, March 1, 2012 — Covington & Burling LLP represented
Borrego Solar Systems, Inc. in connection with its new $47 million project finance fund with partners U.S. Bank and East West Bank. The fund will finance solar energy projects that are expected to create hundreds of new jobs and generate electricity to power nearly 2,000 homes.
Borrego Solar is one of the nation’s leading financiers, designers and installers of commercial and government solar power systems. Covington advised the San Diego-based company on the formation of the fund, and the negotiation of related project and loan agreements.
Borrego Solar joined with U.S. Bank and East West Bank to establish additional solar project funds in the fall of 2010 and spring of 2011, amounting to more than $100 million in financing. Covington represented Borrego Solar in the formation of each of those funds.
“We continued to be impressed with Covington’s ability to handle these transactions in a timely and meticulous manner,” said Mike Hall, CEO of Borrego Solar. “It allows us to move quickly from the funding phase to implementation. Our goal is to deliver on more projects, help organizations go solar with zero up-front costs and create new jobs.”
The most recent fund will be used to build solar energy systems in California, including ten projects for three school districts. The fund also includes two Massachusetts solar power installations, one of which is expected to be the largest of its kind in the state.
The Covington team was led by Ingrid Rechtin, with assistance from Bruce Deming, Christopher Angell and Paula Domingos. Robert Fleishman and Whitney Gallagher provided energy regulatory advice. Daniel Luchsinger, Kurt Baca and Lindsay Kitzinger provided tax advice.
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