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

A live 90-minute premium CLE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Thursday, January 23, 2025 (in 8 days)

1:00pm-2:30pm EST, 10:00am-11:30am PST

or call 1-800-926-7926
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This CLE course 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 on tax equity partners, protections for lenders, and other considerations crucial 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 the challenges of structuring back-leveraged financing transactions, the impact on 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 what are the challenges for back-leverage debt financing?
  • What are the collateral and critical issues that stem 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

Schulwolf, James
James C. Schulwolf
Partner
Shipman & Goodwin

Mr. Schulwolf is a partner in Shipman's Business and Corporate Practice Group.  He focuses his practice on...  |  Read More

Additional faculty
to be announced.
Attend on January 23

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You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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