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Vinson & Elkins Represents Monarch Alternative Capital LP in Capstone Green Energy Investment

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Vinson & Elkins LLP represented Monarch Alternative Capital LP (“Monarch”) in connection with a series of related transactions with Capstone Green Energy Holdings, Inc. (“Capstone”), in which funds managed by Monarch agreed to purchase $80 million of Capstone’s newly designated Series A Convertible Preferred Stock and $15 million of Capstone’s common stock. $85 million of the proceeds of the transaction will be used to fully redeem the preferred equity interest in Capstone Green Energy LLC (through which Capstone operates its business) held by Capstone Distributor Support Services LLC, an entity controlled by Goldman Sachs, resulting in Capstone Green Energy LLC becoming a wholly owned subsidiary of Capstone. Capstone intends to use the remainder of the net proceeds for growth initiatives, such as expanding into the AI data center market, building its engineering and technology capabilities, increasing capacity, improving cost-out measures, and for general working capital.

The Vinson & Elkins team was led by Partners Francisco Morales Barrón and Ben Heriaud, Senior Associates Peter Faour and Nick Wetzeler, and Associates Jeff Szulc and Inès Lechani. Also advising were Partner Ron Nardini and Staff Attorney Adi Louzon.

About Vinson & Elkins
For more than a century, Vinson & Elkins has provided outstanding client service across important industries that drive the global economy. Built on a strong culture of collaboration across 14 offices worldwide, V&E lawyers are committed to excellence, offering clients decades of legal experience in handling transactions, investments, projects and disputes across the globe. Learn more by visiting www.velaw.com or connect with us on LinkedIn.

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