Clearway Energy Operating’s $925 Million Green Bond Offering

Baker Botts LLP advised Clearway Energy Operating LLC on the deal.

Clearway Energy Operating LLC (“Clearway Operating”), a subsidiary of Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) (“Clearway Energy”), completed the sale of $925 million aggregate principal amount of its 3.750% Senior Notes due 2031 (the “New Notes”).

Clearway Operating intends to allocate an amount equal to the net proceeds from the offering of the New Notes to finance or refinance, in part or in full, new and existing projects and assets meeting certain renewable energy generation eligibility criteria. Specifically, Clearway Operating used a portion of the proceeds from the offering to fund its tender offer (the “Tender Offer”) for the $600 million outstanding aggregate principal amount of its 5.750% Senior Notes due 2025 (the “2025 Notes”), and intends to use the remaining portion to redeem the remaining amount of the 2025 Notes, to pay fees and expenses related to the offering and in connection with the repurchase of the 2025 Notes, to repay outstanding borrowings under its revolving credit facility and for general corporate purposes.

Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and MUFG Securities Americas Inc. acted as joint bookrunning managers for the offering.

Baker Botts represented Clearway Operating in both the notes offering and the Tender Offer.

Clearway Energy is one of the largest renewable energy owners in the US with over 4,200 net MW of installed wind and solar generation projects. Clearway Energy also owns approximately 2,500 net MW of environmentally-sound, highly efficient natural gas generation facilities as well as a portfolio of district energy systems. Through this environmentally-sound diversified and primarily contracted portfolio, Clearway Energy endeavors to provide its investors with stable and growing dividend income.

The Baker Botts team included Preston Bernhisel (Partner, Picture), Rosemary Maberry (Associate, Dallas), Derek Gabriel (Associate, Dallas), Rusty Shellhorn (Associate, Dallas), Martin Toulouse (Partner, New York), Janice Han (Associate, New York), Matt Donnelly (Partner, Washington) and Peter Farrell.

Involved fees earner: Preston Bernhisel – Baker Botts; Matt Donnelly – Baker Botts; Peter Farrell – Baker Botts; Derek Gabriel – Baker Botts; Janice Han – Baker Botts; Rosemary Parravano Maberry – Baker Botts; Rusty Shellhorn – Baker Botts; Martin Toulouse – Baker Botts;

Law Firms: Baker Botts;

Clients: Clearway Energy, Inc;

Martina Bellini

Author: Martina Bellini