Vinson & Elkins’ Offshore Wind Project Named 2024 Deal of the Year

Vinson & Elkins represented Stonepeak in financing and acquiring the 50% stake from Dominion Energy. The 2.6-gigawatt CVOW, which is the largest offshore wind farm currently under construction in the U.S, is on schedule to generate enough clean, renewable energy to power up to 660,000 homes once fully constructed in late 2026. CVOW will consist of 176 turbines and three offshore substations in a nearly 113,000-acre lease area off the coast of Virginia Beach.

In naming CVOW deal of the year, PFI said the project’s financing was “impressive, using unique project dynamics to bring in a huge number of lenders for an attractively priced deal. Those who worked on the deal were able to take advantage of an evolving regulatory environment, maturing offshore wind market, and investor appetite for larger-scale renewable energy investments in the U.S.”

PFI added: “the project’s rate-base revenue structure allows the sponsors to earn a pre-determined rate of return, mitigating construction cost overrun risk as well as operational performance risk. That regulatory construct is unique relative to most non-recourse project finance transactions, as it generates rate base revenue pursuant to a rider with the Virginia State Corporation Commission. This gives the project reliable and leverageable cashflows but requires relatively atypical sizing, structuring, and credit analysis from lenders.”

The publication has covered project finance for more than 25 years in all the major sectors, including transport, power, oil & gas, infrastructure, and mining.

Vinson & Elkins’ CVOW team was led by partners Matt Falcone, Benji Barron and Eamon Nolan, counsel Zach Banks and senior associate Jordan Fossee, with assistance from partners Kaam Sahely, Andrew Nealon, Aaron Prince, Josh Heideman, John Michael and Michael Joyce, counsel Alistair Wishart, senior associate Brent Schoradt, and associates Tushar Parashar, Brad Oster, Brian Park, Michelle West, Peter Kim, Garrett Finch, Darren Fox and Hunter Michielson. Other key team members include partners David Peck, Sean Moran, Lauren Collins and Wendy Salinas, counsel Peter Rogers and associates Trey Frye and Lauren Nieman; partners Matt Dobbins and Brandon Tuck and associates Kelly Rondinelli and Kevin Moscon; partner Jeffrey Jakubiak and senior associate Andrew DeVore; partner David Wicklund and Tzvi Werzberger, counsel Carter Olson and associate Avi Shchigel; counsel Ken Adler; partners Craig Zieminski and Jamie Leader, counsel Elizabeth McIntyre and Brian Howard, senior associate Will Stripling and associates Alexander Sprenger, Ami Egerstrom, Eli Sterbcow and Emily Bamesberger.