The investment was subject to various state and federal regulatory approvals, which have been obtained.
Under the terms of the transaction, Clean Line will use proceeds from the National Grid investment to advance the development of its four high-voltage direct-current (HVDC) transmission projects that will connect onshore wind energy resources in the midwestern U.S. to communities and cities with demand for low-cost clean energy.
Per the terms of the deal, National Grid will have the ability to acquire a significant ownership stake in Clean Line's HVDC projects. The funds associated with ZBI Ventures and the Houston-based Zilkha family will maintain their existing equity stakes in the company.
Lazard acted as financial adviser to Clean Line for this transaction. Grid America, a subsidiary of National Grid USA, will make the investment in Clean Line with corporate funds. The transaction is separate from National Grid's existing regulated businesses in the U.S. and the U.K.