Trio of deals sees Clipper Windpower raise over $350m
2 May 2008
JPMorgan's private equity arm invests $150m as part of strategic agreement
LG, the business law firm, has advised long-standing client Clipper Windpower Plc ("Clipper") – the manufacturer of advanced wind turbines and developer of international wind energy projects – on a series of deals that support Clipper's rapid business growth in the US market.
Clipper has entered into a long standing strategic relationship with One Equity Partners (“One Equity”), the private equity arm of JPMorgan Chase & Co., resulting in a $150m equity investment in Clipper to support the acceleration of the company's strategy to manufacture, commission and deliver its innovative 2.5MW Liberty Turbine into the booming US wind energy market.
As part of the agreement, One Equity will subscribe for approximately 15.8 million new shares raising gross proceeds of approximately $150m (assuming a subscription price of £4.80 per share). On this basis following admission One Equity will hold approximately 12.3% of Clipper’s issued share capital.
The agreement with One Equity is subject to the fulfilment of customary conditions, including the receipt of US anti-trust approval and the approval by shareholders at a General Meeting of the Company to be held on 6 May 2008.
In addition, certain existing major institutional shareholders of Clipper have agreed to subscribe for 4,692,220 new shares at 537.5p per share, which will raise gross proceeds of $50 million. The issuance of these new shares is subject to approval by shareholders at a General Meeting of the Company to be held on 18 April 2008.
Finally, Clipper has arranged a $60 million bank-administered secured term credit facility funded by a customer and has secured the performance of certain Clipper obligations in order to facilitate approximately $85 million of pre-delivery turbine payments from a second customer.
Lance Feaver and Hugh Maule, corporate partners at LG, led the teams advising Clipper which included corporate lawyers David Ponsford, Karima Hudson, James Morgan and Richard Boardman on the agreement with One Equity Partners, corporate lawyers David Ponsford and Fiona McIlreavy on the $50m share subscription and finance lawyer John Nystrom on certain aspects of the secured term credit facility.
Notes to editors:
- LG is a London-based law firm advising clients internationally. It has a particular focus on entrepreneurial and growth market clients seeking to raise capital for their business ventures.
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Lance Feaver
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