ArcLight Capital Partners has acquired a 640-megawatt generation facility located in Sandersville, Georgia from KGen Power Corp. The deal was valued at $130 million, with GE Capital leading a $98 million financing package.
ArcLight Capital Partners, LLC, through its wholly-owned affiliate AL Sandersville Holdings, LLC, has acquired a 640-megawatt generation facility located in Sandersville, Georgia from KGen Power Corporation for $130 million. GE Energy Financial Services, a unit of GE (NYSE: GE), closed financing as the lead lender of the $98 million in senior secured credit facilities partially financing the acquisition.
Built in 2002, using eight 80-megawatt GE simple-cycle gas turbines, the Sandersville plant supplies power into the southeastern power market, particularly Georgia, during periods of peak demand or supply volatility. Sandersville is strategically located near four other facilities in Georgia owned by ArcLight through its affiliate Mackinaw Power, LLC, which have an aggregate capacity of 1,887 megawatts. Combined with Sandersville, this portfolio represents a more than 2,500-megawatt strategic platform making it the second largest independent power producer in the state, with the capacity to meet the peak demand of a city with a population of 450,000.
“This asset is an important addition to our southeast gas power generation facility portfolio that is well positioned to benefit from the current macroeconomic recovery and pending energy and carbon legislation, as well as the unconventional gas boom in the US,” said Dan Revers, Managing Partner of ArcLight.
GE Energy Financial Services’ affiliate, GE Capital Markets, Inc., acted as sole lead arranger. Siemens Financial Services, Inc. joined GE Energy Financial Services in providing the $98 million in credit facilities comprised of a $78 million term loan and a $20 million letter of credit. Additional financial details of the transaction were not disclosed.
“This transaction demonstrates GE Energy Financial Services’ deep expertise in power markets across the United States to provide debt financing for customers throughout the energy sector,” said Matt O’Connor, Managing Director, Financial Institutions Group at GE Energy Financial Services. “We applied our energy expertise to assess the southeastern power market which allowed us to structure and lead arrange this financing in a way that helps ArcLight grow and continue meeting power demand in the region.”
With approximately 50 dedicated professionals focused on debt products and services, GE Energy Financial Services provides structured, project and acquisition debt, revolving credit facilities, and corporate loans. The GE unit has a debt portfolio of nearly $7 billion, spanning power, oilfield services, pipelines, gas storage, refining, exploration and production, mining and fuel distribution. GE Capital Markets, Inc. provides arranging and syndication for many of these facilities.
ArcLight is one of the world’s leading energy investment firms with more than $6.8 billion under management. ArcLight’s investment team has extensive energy investing experience, industry relationships, and asset level knowledge. ArcLight is headquartered in Boston, Massachusetts with offices in New York City, London and Luxembourg. More information about ArcLight can be found at http://www.arclightcapital.com.
About GE Energy Financial Services
GE Energy Financial Services’ experts invest globally across the capital spectrum in essential, long-lived and capital-intensive energy assets that meet the world’s energy needs. In addition to capital, GE Energy Financial Services offers the best of GE’s technical know-how, technology innovation, financial strength and rigorous risk management. Based in Stamford, Connecticut, the GE business unit helps its customers and GE grow through new investments, strong partnerships and optimization of its $23 billion in assets. For more information, visit www.geenergyfinancialservices.com.
GE (NYSE: GE) is a diversified infrastructure, finance and media company taking on the world’s toughest challenges. From aircraft engines and power generation to financial services, health care solutions, and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company’s Web site at www.ge.com.
About KGen Power Corporation
KGen Power Corporation owns and operates merchant electric power generation plants and sells electricity and electrical generation capacity. Its existing portfolio consists of four operational and fully permitted power plants in the southeastern United States, with an aggregate capacity of 2,390 megawatts. For more information, visit www.kgenpower.com.