We advised the mezzanine lender and administrative agent on the transaction

Davis Polk advised Kiwoom Asset Management Co., Ltd and certain of its affiliates in connection with a comprehensive out-of-court recapitalization of Cricket Valley Energy Center and its affiliates (collectively, “Cricket Valley”). Pursuant to the terms of the transaction, Kiwoom exchanged approximately $326 million of mezzanine debt for warrants which, subject to receipt of certain regulatory approvals, will convert into a substantial majority of Cricket Valley’s common equity. The transaction also entailed, among other things, the refinancing of approximately $635 million of Cricket Valley’s outstanding operating company debt with new first- and second-lien credit facilities, the implementation of corporate governance structures consistent with applicable regulatory requirements, and the issuance of warrants to the new second-lien lenders, a new asset manager and the existing sponsors.

Cricket Valley owns a state-of-the-art power facility in Dover, New York. It utilizes modern combined-cycle natural gas turbine technology to produce reliable electricity with fewer carbon emissions than traditional simple-cycle gas or coal plants.  It has the capacity to generate approximately 1,016 megawatts of electricity, or enough to power one million homes.

The Davis Polk restructuring team included partners Damian S. Schaible and Jonah A. Peppiatt and associate Moshe Melcer. The infrastructure finance team included partner Elena Maria Millerman and associate Mostafa Al Khonaizi. Counsel J. Avelina Burbridge provided real estate advice. The M&A team included partner Evan Rosen, counsel Jacob S. Kleinman and associate Jessica Poggi. Partner Corey M. Goodman and associates Bradford Sherman and Michael Hsieh provided tax advice. Partner Paul D. Marquardt and associate Charles Marshall Wilson provided regulatory advice. Members of the Davis Polk team are based in the New York and Washington DC offices.

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