GIP’s £4.46bn acquisition of 50% interest in the 1.218MW Hornsea 1 offshore wind farm from Ørsted

Slaughter and May advised Ørsted on its proposed disposal of a 50% interest in the 1.218MW Hornsea 1 offshore wind farm to Global Infrastructure Partners (GIP).

It also advised on the terms of certain related financing, construction, operations and maintenance and power purchase arrangements. Hornsea 1 is currently under construction and will be the world’s largest offshore wind farm when commissioned in 2020.

The transaction is subject to certain regulatory approvals, including from relevant competition authorities, and is expected to close in Q4 2018. The total transaction proceeds, consisting of the acquisition of a 50% ownership share and commitment to fund 50% of the payments under a full scope EPC contract with Ørsted, amount to c.£4.46bn, which will be paid in the period 2018-2020.

GIP will partially finance the acquisition using a multi-tranche financing package of more than £3.5bn, consisting of a mixture of investment grade-rated project bonds, commercial bank loans and mezzanine debt. This financing will be the largest single-project financing to date in the global renewable energy sector.

Slaughter and May advised Ørsted on the deal with a Corporate and commercial team led by Tim Pharoah (partner, in picture), Paul Mudie (partner), Ross Davies (associate), Robyn Butler-Mason (associate), Rose Bailey (associate), Tom Potter (associate), Robin Culshaw (associate)

Financing: Azadeh Nassiri (partner), Susan Hughes (partner), Adrian Barrus (associate), David Coates (associate), Matt Gibson (associate), Jonathon Yeung (associate), Adam Burk (associate), Matt Hollinshead (associate), Stephen Blair (associate), Sarah Denton (associate), Zhen Lim (associate), Shalina Rahman (associate)

Construction: Richard Todd (partner), Oliver Moir (associate), Iain McCann (associate), Rory Botros (associate), Bronwen Hutchison (associate) Edward McGimpsey (associate)

Real Estate, Consents and Environment: Samantha Brady (senior counsel), Richard Keczkes (associate), Gemma Goddard (associate), Todd Wu (associate), Tim Meade (associate)

Tax: William Watson (partner), Gareth Miles (partner), Orlaith Kane (associate)

 

Involved fees earner: Tim Pharoah – Slaughter and May; Paul Mudie – Slaughter and May; Ross Davies – Slaughter and May; Robyn Butler – Slaughter and May; Rose Bailey – Slaughter and May; Thomas Potter – Slaughter and May; Robin Culshaw – Slaughter and May; Azadeh Nassiri – Slaughter and May; Susan Hughes – Slaughter and May; Adrian Barrus – Slaughter and May; David Coates – Slaughter and May; Matthew Gibson – Slaughter and May; Jonathon Yeung – Slaughter and May; Adam Burk – Slaughter and May; Matt Hollinshead – Slaughter and May; Sarah Denton – Slaughter and May; Stephen Blair – Slaughter and May; Zhen Lim – Slaughter and May; Shalina Rahman – Slaughter and May; Richard Todd – Slaughter and May; Oliver Moir – Slaughter and May; Iain McCann – Slaughter and May; Rory Botros – Slaughter and May; Bronwen Hutchison – Slaughter and May; Edward McGimpsey – Slaughter and May; Samantha Brady – Slaughter and May; Richard Keczkes – Slaughter and May; Gemma Goddard – Slaughter and May; Todd Wu – Slaughter and May; Tim Meade – Slaughter and May; William Watson – Slaughter and May; Gareth Miles – Slaughter and May; Orlaith Kane – Slaughter and May;

Law Firms: Slaughter and May;

Clients: Ørsted;