Poseidon Resources has closed the financing for its $922 million Poseidon Carlsbad Desalination Project in San Diego County, California. Dickstein Shapiro led the financing for the transaction, which includes $755 million in investment grade tax-exempt bonds, as well as $167 million in private equity, the company said.
Dickstein Shapiro LLP is pleased to announce that the financing for the $922 million Poseidon Carlsbad Desalination Project in San Diego County, California closed today. The firm has served as primary legal advisor to Poseidon Resources since the company’s inception and led the financing for the transaction, which includes $755 million in investment grade tax-exempt bonds, as well as $167 million in private equity.
Co-located with the NRG Encina Power Station, the Poseidon Carlsbad Desalination Project is scheduled to begin construction immediately and will include an advanced-technology desalination plant and 10 miles of water pipeline. When complete, the project will be the largest seawater desalination plant in the Western Hemisphere and will produce up to 50 million gallons of drinking water per day.
Dickstein Shapiro led the entire debt and equity financing for the project, which is structured as a public-private partnership and included 60 parties to the transaction. In addition to leading the complex, multiparty financing arrangements, the firm also handled the water purchase agreement and related agreements, as well as all of the project documentation for the facility, including agreements for construction operation and maintenance, equipment supply, site lease, and related arrangements.
“Dickstein Shapiro has advised Poseidon Resources since its inception, and we are especially pleased that our team played an integral role in moving this breakthrough project from concept to construction,” said Partner Frederick Lowther. “The successful closing of this very complex deal speaks to Dickstein Shapiro’s very substantial capabilities in project finance and our firm’s role at the leading edge of water infrastructure development in the United States and abroad.”
“Dickstein Shapiro is one of the nation’s premier law firms for water project development, and the team provided superb counsel over the course of this project’s planning. Their diligence and deep understanding of large-scale development and financing helped ensure that this project became a reality,” said Poseidon Resources CEO Carlos Riva. “With growing demand for reliable sources of fresh water, the Poseidon Carlsbad Desalination Project will be a key component of San Diego County’s overall water supply while also paving the way for future desalination projects in California and beyond.”
The firm has represented Poseidon Resources since it was founded in 1995 and has served as outside counsel and project counsel for all of the company’s projects. Poseidon Resources is the only company in the United States developing large-scale seawater desalination plants. While the Carlsbad facility will be the largest such facility in the Western Hemisphere, it is possible that Poseidon’s subsequent projects will be as large or even larger.
The Dickstein Shapiro team included Energy Practice Partner Frederick Lowther and Corporate and Finance Partner Patrick Lynch, Senior Counsel Rebecca Wright, Partner Emanuel Faust, Senior Counsel Jennifer Eck, and Energy Associate Bethany Bryant Dukes. Partner Donald Gregory served as intellectual property counsel to Poseidon Resources.
Dickstein Shapiro has substantial experience providing legal counsel for large-scale water project development and finance. The firm represents suppliers and purchasers of water, water treatment services, and large seawater desalination projects in connection with project permitting and financing, construction, contract negotiations, and ongoing operational issues.
Dickstein Shapiro LLPDickstein Shapiro LLP, founded in 1953, is internationally recognized for its work with clients, from start-ups to Fortune 500 corporations. Dickstein Shapiro provides strategic counsel and develops multidisciplinary legal solutions by leveraging its core strengths–litigation, regulatory, transactions, and advocacy–to successfully advance clients’ business interests. The firm has offices in Los Angeles, New York, Orange County, Silicon Valley, Stamford, and Washington, DC.