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Morgan Lewis Advises Highstar Capital on Acquisition of Salem Harbor Power Station Project and $730 Million Construction Financing

January 12, 2015

NEW YORK, January 12, 2015: Morgan Lewis represented Highstar Capital IV, L.P., and its affiliated funds (“Highstar IV”), managed by Oaktree Capital Management, L.P., in the acquisition and project financing of the Salem Harbor Power Station development project, a 700MW gas-fired power plant to be built in Salem, Massachusetts.

Under the terms of the acquisition, Highstar IV will invest 87.5% of the equity necessary for construction of the project. An affiliate of Toyota Tsusho Corporation will invest the remaining 12.5% of the construction equity. Simultaneously with the acquisition, Highstar IV and the project company closed on debt financing for the project. A consortium of lenders led by MUFG Bank, GE Energy Financial Services and BNP Paribas has committed a total of $600 million in construction financing in addition to a $130 million letter of credit facility.

Morgan Lewis also advised in connection with the engineering procurement and construction (“EPC”) contract with Iberdrola Energy Projects, Inc.

The Morgan Lewis acquisition team was led by Business and Finance Practice partner Jonathan Morris, with support from associates Danielle Davis and Daniel Landy. The project finance and EPC contracting team was led by Business and Finance Practice partner Terrence Dugan, with support from associates Emmeline Liu, Matthew McNamara and Romy Kim.