NEW YORK--()--A multi-disciplinary renewable energy team from CohnReznick LLP (CR), along with key members of Reznick Capital Markets Securities (RCMS), announced the closing of an $88 million sale and leaseback transaction of the 23.4 megawatt Punta Lima wind farm outside Naguabo, Puerto Rico.
“Their expertise in renewable energy transactions and comprehensive financial and accounting services was critical throughout this complex financial transaction.”
CR/RCMS provided expertise in consulting and advisory services to the seller and long standing client of the firm, Gestamp Wind Energy North America. The buyer, Sovereign Bank, N.A., is a subsidiary of Banco Santander.
“We are pleased to be working closely with CohnReznick and Reznick Capital Markets Securities, who we selected as a direct result of their proven track record of advising us on a total of four wind farms to date,” said Gestamp Wind CFO Alejandro Burgaleta. “Their expertise in renewable energy transactions and comprehensive financial and accounting services was critical throughout this complex financial transaction.”
CohnReznick’s National Renewable Energy Practice and the RCMS team played a central role in the deal, providing financial, tax and auditing consulting, valuation and structuring services.
“Our team was able to continuously evolve its approach as we worked with Gestamp Wind to help navigate the challenges associated with financing a wind farm in Puerto Rico,” said Robert Sternthal, Reznick Capital Markets Securities. “As a result of our depth of knowledge in the renewable energy space, we were well positioned to overcome related obstacles and challenges and provide the leadership to successfully finalize this deal in a short time frame.”
The project has a Power Purchase and Operating Agreement (PPOA) with the Puerto Rico Electric Power Authority (PREPA), which contracted 100 percent of the energy produced along with the renewable energy credits.
Tim Kemper, CohnReznick partner and National Co-Leader of the firm’s Renewable Energy Practice, concluded “We’re very proud to bring this project to fruition. The process has demonstrated the importance of strong support from local government and the utility company. With our fully integrated approach to service delivery, CohnReznick was ideally placed to help PREPA modify its energy portfolio by reducing its oil consumption through increasing renewable energy deployment.”
With origins dating back to 1919, CohnReznick is currently the 11th largest accounting, tax and advisory firm in the United States, combining the resources and technical expertise of a national firm with the hands-on, entrepreneurial approach that today's dynamic business environment demands. CohnReznick serves a large number of industries and offers specialized services for Fortune 1000 companies, middle-market firms, international enterprises, government agencies, not-for-profit organizations, and other key market sectors. Headquartered in New York, NY, CohnReznick serves its clients with 27 offices, more than 280 partners, and 2,000 employees. The firm is a member of Nexia International, a global network of independent accountancy, tax, and business advisors. www.cohnreznick.com
About Reznick Capital Markets Securities
Reznick Capital Markets Securities (“RCMS”) offers a comprehensive financial advisory platform for the renewable energy industry. RCMS provides solutions for tax equity, equity, debt, asset sales or purchases. RCMS represents financial institutions, infrastructure funds, strategic participants (IPPs and utilities) and more than 60 wind, solar, biomass and other alternative energy developers nationwide. Reznick Capital Markets Securities has lead the financing of over 850 MW in solar, wind and biomass projects with a total deal value in excess of $2.3 billion. Moreover, RCMS has placed over $2 billion of assets in tax equity financing and $300 million of asset value in sale placements and asset sales.