The following is an excerpt from Practice Perspectives: Vault's Guide to Legal Practice Areas.
Kaleb Sanchez advises commercial banks, private credit/equity firms, and other financial institutions (including insurance companies), as well as sponsors and borrowers, on a broad range of financing transactions. His experience includes domestic and cross-border project financings, acquisition financings, equipment leasing, warehouse facilities, and restructuring transactions. Kaleb’s experience also includes a wide range of asset types, including solar, storage and wind assets, renewable natural gas (RNG), real estate, equipment, shipping containers, and other esoteric assets.
Describe your practice area and what it entails.
My practice is focused on financings of energy and infra-structure projects at all levels of the capital structure, with a particular focus on renewable energy assets both in the United States and in Latin America. This entails advising both lenders and borrowers on the terms and documentation for loan facilities and other types of financings to help cover the costs of developing, constructing, and operating large-scale energy and/or infrastructure projects.
What types of clients do you represent?
My practice spans a diverse client base, including both lenders/investors and sponsors/borrowers. A significant portion of my current practice includes representing both traditional and nontraditional lenders and financial institutions, including large commercial banks, investment banks, and specialty finance, private credit/debt, and insurance companies.
What types of cases/deals do you work on?
I work on development, construction, and long-term financings of renewable energy projects, such as solar projects (including utility-scale, distributed generation, and rooftop), battery storage, wind farms, landfill RNG projects, and other new energy projects. These deals involve development and construction loan facilities, warehouse facilities, acquisition financings, and long-term debt solutions, as well as the sale and other types of monetization of tax credits generated by the underlying projects.
How did you choose this practice area?
I chose to focus my practice in the project finance and renewables sector because I enjoy working with a tangible asset class that has a direct impact on individuals and communities. I have worked on energy projects in my home state that provide power to local high schools and the local utility company.
It is also rewarding to work on a relatively new and expanding sector with ongoing legal, regulatory, and market changes that require novel solutions and adaptation to the latest changes. The renewables space, in particular, is not a market with a long or well-established history or regime. This allows attorneys to gain ground and develop expertise in a relatively short period of time.
What is a “typical” day like and/or what are some common tasks you perform?
There are few “typical” days because each day is heavily dependent on the stage and status of my transactions. How-ever, typical tasks include reviewing and/or drafting credit agreements, conducting diligence on contracts and other project documents for the development and construction of the project(s), advising my clients on both legal and commercial issues in our agreements, negotiating with opposing counsel, and coordinating with local counsel on matters of the local law (such as regulatory, permits, and real estate) in the jurisdiction where the projects are located.
What training, classes, experience, or skills development would you recommend to someone who wishes to enter your practice area?
There aren’t many classes that can fully prepare you for this practice area. My recommendation is to take classes focused on a transactional practice, such as classes covering contracts, the Uniform Commercial Code, and negotiations. However, there is no substitute for experience, which means starting early in one’s career working on deals in this space and getting as much repetition as possible.
What is the most challenging aspect of practicing in this area?
Part of our role is not only to help our clients solve current challenges but also to advise them of challenges ahead. Our clients rely on us to advise them on the impact of proposed changes in law, regulations, and official interpretations. Accordingly, it is important for us to stay abreast of proposed legislation, executive orders, and even public statements and discussions among members of Congress, regulatory agencies, the judiciary, and the executive branch that impact the energy and infrastructure sectors.
What do you like best about your practice area?
One of the more rewarding aspects of practicing in this area is its dynamic nature. The renewables space is continually changing as a result of advancements in technology and regulatory and political changes. Recent legislation has significantly impacted how financings of solar, wind, and other renewable energy assets are structured and implemented. Practicing in this area requires staying up-to-date with changes in law, regulations, and tax incentives that help drive the market.
What is unique about your practice area at your firm?
My practice involves the financing of large scale projects that require regular collaboration, guidance, and coordination with subject matter experts in tax, real estate, environmental and permitting, and consumer regulatory parties (among others). I regularly work with and across tax counsel, real estate and permitting counsel, and local counsel in specific states in the United States and, for cross-border matters, outside of the United States.
What are some typical tasks that a junior lawyer would perform in this practice area?
We try to give our junior associates a meaningful experience and, early on, expect them to contribute substantively to our matters. They will be asked to participate on calls with clients and the opposing side, perform due diligence review, draft documents and review required deliverables for completion of a transaction. Our junior associates play a key role on our teams.