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Bracewell Represents Developer in a First-of-Its-Kind Distributed Generation Portfolio Project Financing

Image: Microgrid

HOUSTON Bracewell LLP represented Texas Microgrid, LLC, a joint venture indirectly owned by investors managed by Basalt Infrastructure Partners LLP and Enchanted Rock Holdings, LLC, in the successful closing of a project financing for the construction and operation of a portfolio of natural gas-fired and ultra-clean distributed natural gas microgrids within the Electric Reliability Council of Texas (ERCOT) service territory. When fully built-out, the portfolio will total up to 232 megawatts of generating capacity.

Bracewell assisted Texas Microgrid with all aspects of the financing, including commercial contract negotiations, regulatory approvals and all financing documentation. The financing was provided by ING Capital LLC, which is serving as administrative agent for the credit facilities, with The Bank of New York Mellon serving as collateral agent and depositary bank.

Enchanted Rock will be the construction, operations and asset manager. The distributable generation units are being used to provide emergency back-up power to commercial and industrial customers operating
in various sectors, including cold storage, food and beverage, manufacturing and healthcare. The distributable generation units are also being used to offset peak demand charges during the summer months in ERCOT, and are permitted to participate in ERCOT’s Emergency Response Service auctions.

Bracewell lawyers involved in the transaction include:

Partners: Ron I. Erlichman, Nicolai J. Sarad, Whit Swift, Stephen J. Hug, Scott C. Sanders, Fernando Rodriguez Marin and Michele J. Alexander

Associates: Jason W. Keating, Melanie C. Goebel, Shannon M. Rice, Lilliana Dealbert, Ryan Davis and David Kuwabara