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SkyPower Canada (180 GE 1.5 MW SLE Turbines)

Background

Merits:

• SkyPower had 200 GE 1.5 MW SLE turbines, to be delivered in 2009 which were subject to certain payables to GE and a GE TSA.
• The Lehman bankruptcy created an opportunity for Marathon to provide strategic alternatives to SkyPower and its shareholders.

Challenges:

• SkyPower was long turbines and facing approximately USD $440 million of current maturities over the next several quarters (i.e. USD $228 million to GE and $210 million to the banks and GE).
• Quick action was necessary in order to reduce the liabilities associated with the turbine overhang and position the Company for ultimate sale.

Marathon Process

• We represented SkyPower as its Financial Advisor/Investment Banker on the turbine and corporate sale process.
• In conjunction with the management team, we created a teaser and offering book.
• We managed a non-auction sale process for the turbines.
• We received multiple actionable offers from top-tier strategic and financial buyers for its SLE turbines.
• We advised Lehman's Estate in evaluating the offers and selecting the final buyer.
• We managed the due-diligence process utilizing a virtual data-room.

Outcome

• Wind transaction closed with EDF/enXco in February 2009 for 180 GE 1.5 MW SLE turbines for an undisclosed amount.