Global Infrastructure Partners Announces Strategic Investment in Terra-Gen Power
NEW YORK--(BUSINESS WIRE)--Global Infrastructure Partners (GIP), an independent $5.64 billion infrastructure investment fund, announced today that it has reached agreement to acquire up to a 40% convertible preferred interest in Terra-Gen Power Holdings, LLC (Terra-Gen) from ArcLight Capital Partners, LLC (ArcLight). Financial details of the investment were not disclosed.
Terra-Gen is a leading US renewable power generation company that owns or operates over 800 megawatts (MW) of renewable power facilities, including geothermal, wind and solar projects across a broad area of the United States. Terra-Gen also has over 5,000 MW of renewable energy projects under development. Following completion of this transaction, which is expected by year-end, ArcLight and GIP will be partners in driving the continuing growth of Terra-Gen.
Adebayo Ogunlesi, Chairman and Managing Partner of GIP, commented: “We are very pleased to be working with ArcLight and the outstanding Terra-Gen management team to help meet the growing demand for clean, renewable energy in the United States. Their capabilities are an ideal complement to GIP’s operational strengths and our expertise in the power sector.”
Jonathan Bram, the GIP Partner leading the transaction, added: “This investment represents an excellent opportunity for GIP. In Terra-Gen, we have a solid portfolio of operating renewable projects combined with a unique growth platform that includes each of the three most attractive clean energy technologies.”
Credit Suisse acted as financial advisor to GIP.
About Global Infrastructure Partners
Global Infrastructure Partners (GIP) is an independent fund that invests worldwide in infrastructure assets in both OECD and select emerging market countries. GIP targets investments in single assets, and portfolios of assets and companies, in power and utilities, natural resources infrastructure, air transport infrastructure, seaports, freight railroad, water distribution and treatment and waste management. GIP has offices in New York, London, Hong Kong and Sydney and portfolio company operations headquarters in Stamford, Connecticut.
Terra-Gen Power, LLC, (Terra-Gen), a wholly-owned affiliate of ArcLight Capital Partners (ArcLight), announced today that its corporate subsidiary Coso Operating Company, LLC (Coso) has executed a settlement agreement with Little Lake Ranch, Inc. (LLR), which resolves pending litigation challenging the approval of Terra-Gen’s Hay Ranch Water Project.
Terra-Gen is pleased to announce today that it has resolved a claim in California Superior Court associated with the Hay Ranch Water Project and continues to press forward with construction of the Project on federal lands. The Hay Ranch Project plans to use supplemental water injection to restore power production at the existing Coso geothermal plant located in Inyo County, California. The Project has undergone extensive environmental review processes at both the federal and state levels and has received key permits from the County of Inyo and the BLM. These environmental reviews concluded that, with mitigation, the Project would not result in any significant impacts. LLR filed a lawsuit on June 5, 2009 challenging the Project. Among other claims, the lawsuit alleged that the Hay Ranch Water Project may impact Little Lake, a small lake located in Rose Valley used for duck hunting, recreation, and habitat conservation purposes.
Following extensive negotiations, Coso and LLR reached a settlement on August 17, 2009 allowing the Project to proceed without further litigation. Coso will assist LLR in providing improvements around Little Lake to ensure that water for recreational and habitat conservation purposes remains available, consistent with historic conditions. Jim Pagano, CEO of Terra-Gen said, “We managed to find a win-win situation here,” and emphasized, “Terra-Gen stands by our commitments and we are excited to move this Project forward in an environmentally responsible manner.”
When completed, the Hay Ranch Water Project will boost renewable energy production at the Coso geothermal resource and allow geothermal energy to serve an estimated 50,000 additional California homes. Terra-Gen anticipates completing construction of the 9-mile pipeline in late 2009, which will be used to deliver supplemental water to the Coso project.
ABOUT COSO:
The Coso Geothermal Facility is a renewable facility located on the China Lake Naval Air base in Inyo County, California. The project has been producing clean renewable power since 1987, and has historically delivered up to 270 MW to the grid. Coso has a long-term agreement with the Navy for use of resource and land area through 2034. The project also has long-term geothermal leases with the BLM. The project has a long-term power purchasing agreement with Southern California Edison and has the potential to provide renewable energy for up to 300,000 homes and businesses.
Terra-Gen Power, LLC, ("Terra-Gen"), a wholly-owned affiliate of ArcLight Capital Partners ("ArcLight"), announced today that its Coso Geothermal Facility ("Coso") has obtained critical permits from the US Department of Interior's Bureau of Land Management ("BLM") to construct a 9 mile pipeline to recharge the existing geothermal reservoir that will allow Coso to significantly increase generation of renewable baseload power.
The BLM has granted a Record of Decision and Right-of-Way Grant to permit the project to inject supplemental water into the geothermal resource in order to stabilize and enhance the geothermal field. The water enhancement project will allow geothermal energy to serve an estimated 50,000 additional California homes. After completing an extensive environmental review process, the BLM concluded there will be no significant impacts created by the project.
Coso recently obtained a Conditional Use Permit from Inyo County following an extensive Environmental Impact Review of the project to allow for the beneficial use of water that the Coso project had obtained several years ago. Terra-Gen anticipates completing the construction of the 9 mile pipeline which will be used to deliver supplemental water to the Coso project in late 2009.
"We are grateful to the BLM for issuing these permits which will allow the Coso Geothermal Facility to continue to be a critical component of the state-wide effort to meet California's clean energy goals," said Jim Pagano, CEO of Terra-Gen. "The Coso enhancement project will stabilize and enhance output from this crucial facility, benefiting not only the local economy but also the state and nation as we seek to increase environmentally friendly power."
Terra-Gen Power, LLC has closed a $115 million initial funding of a $140 million pre-construction financing used to fund the purchase of 100 General Electric 1.5 megawatt SLE wind turbines. The wind turbines will be deployed in the development of the 150 megawatt Alta Wind I wind project in the Tehachapi, CA area. The commitments were funded by a lender group composed of Calyon, Prudential Capital Group, and CIT. Calyon acted as Lead Arranger and Administrative Agent for the lenders, with Prudential Capital Group serving as Documentation Advisor.
NEW YORK, NY – Terra-Gen Power, LLC, (“Terra-Gen”), a wholly-owned affiliate of Arclight Capital Partners (“Arclight”), announced today that, through an affiliated project company, it has acquired a portfolio of six wind projects from Airstream Energy, LLC (“Airstream”). The projects, which are located in Wyoming, Nebraska, Colorado, Kansas and New Mexico are in various stages of development and, when fully constructed, are expected to generate and sell approximately 2500MW of wind energy.
ASX-listed Allco Finance Group ("Allco") and a consortium comprising the US-based ArcLight Capital Partners and Terra-Gen Power, have today agreed to the sale and purchase of Allco's and its co-investors' US wind energy interests for a total sale price of US$325 million. The interests being sold comprise a circa 3100MW wind development project in Tehachapi, California, one of the largest wind development projects in the world.
Allco and its co-investment partners will realise significant liquidity and profitability from the sale which is part of a previously announced Allco asset sales program.
Nick Bain, Allco's Head of Infrastructure, said, "This sale has delivered to Allco and its co-investment partners a highly profitable outcome in a relatively short time frame, a result of Allco's decision 2 years ago to establish its global wind energy business."
Steen Stavnsbo, Allco's Head of Wind Energy, added "In Tehachapi, we have benefited greatly from our relationship with our development partner, Oak Creek Energy Systems, a subsidiary of Japanese Marubeni Corporation, who has played a pivotal role in the development of the project to date".
Allco's after tax share of sale proceeds is expected to be approximately A$165 million, which it will use to further pay down its senior debt facilities with its banking syndicate. In addition, on closing of the sale, Allco will be released from certain letter of credit obligations totalling A$65 million. Allco's corporate senior debt and contingent commitments are expected to be reduced by approximately A$230 million in total as a result of the sale, based on current exchange rates.
Allco's current drawn borrowings and contingent commitments under its senior debt facilities is A$935 million. As a result of the Tehachapi sale and other asset sales, Allco will be targeting a senior debt level of A$675 million by 31 July 2008.
The sale is subject to certain regulatory approvals which are expected to be satisfied by the end of July 2008.
The Tehachapi wind development project is the largest single wind development in the US under one controlling entity. The project is supported by a landmark 1550MW power purchase agreement with Southern California Edison that was negotiated and announced by Allco in December 2006.
Tehachapi is one of the main wind zones in California. California has set a 20% requirement for renewable energy by 2010 and a recommended target of 33% by 2020.
Allco was advised by Marathon Capital, LLC, a leading financial advisor in the US energy industry, and Kaye Scholer, as lead legal counsel.
Terra-Gen Power, LLC ("Terra-Gen"), a leading renewable energy company, announced today it has hired James Pagano to act as its Chief Executive Officer. Terra-Gen, owned by affiliates of ArcLight Capital Partners, LLC, owns interests in twenty geothermal, wind and solar generating plants located through-out the United States with a combined installed capacity of 824 megawatts, acquired from Caithness Energy on December 7, 2007.
Boston, MA (August 2, 2007) -- Caithness Energy, LLC ("Caithness") and ArcLight Capital Partners, LLC ("ArcLight"), announced that they have reached an agreement whereby an affiliate of ArcLight will acquire interests in eighteen geothermal, wind and solar renewable power generation projects (the "Projects") with an installed capacity of 824 megawatts from Caithness through a series of transactions.