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Ares Capital Commits $59 Mln for La Paloma Refinancing

Ares Capital said Monday that it committed $59 million in a  $110 million second lien term loan that supports the refinancing of La Paloma Generating Co. Kern County, Calif.-based La Paloma is a four-unit, 1,022 MW natural gas-fired power facility owned by EIG Global Energy Partners and Rockland Capital.


Ares Capital Corporation (NASDAQ: ARCC) announced today the closing of the first investment by the newly formed project finance team of its investment adviser, Ares Capital Management LLC. Ares Capital acted as the lead second lien debt investor by committing $59 million in a $110 million second lien term loan in support of the refinancing of La Paloma Generating Company, a four-unit, 1,022 MW natural gas-fired power facility located in Kern County, CA. La Paloma is owned by EIG Global Energy Partners and Rockland Capital, among other investors. Rockland Capital is also the asset manager of the project.

Ares Capital Management LLC’s project finance team was formed in June with the hiring of three professionals to focus on senior and mezzanine project finance debt investments. Based in Ares’ New York office, Paul Colatrella and Brian O’Connor joined as Managing Directors and co-heads of the team along with Michael Roth who joined as a Senior Associate.

“We are extremely pleased to have Paul, Brian and Mike join Ares Capital Management LLC’s team of investment professionals,” said Michael Arougheti, President of Ares Capital. “They bring unique skills and relationships to Ares Capital, and possess strong long term track records of investing in the project finance sector. The addition of the project finance team reflects Ares Capital’s continuing strategy of exploiting growth opportunities within attractive middle market sectors, while maintaining its established investment discipline and underwriting philosophy.”

Messrs. Colatrella, O’Connor and Roth join Ares Capital from TCW/EIG Global Energy Partners, where both Colatrella and O’Connor served as Senior Vice Presidents at the energy-focused senior and mezzanine debt fund manager. Mr. Colatrella joined TCW in 2006 following a 13-year career in project finance lending at Hypovereinsbank, AG and Dai-Ichi Kangyo Bank, Ltd. Mr. O’Connor joined TCW in 2002 after spending three years providing advisory services for utility industry mergers and acquisitions at Dresdner Kleinwort Wasserstein. Mr. Roth joined TCW in 2008 and served as an Assistant Vice President. Prior to that, he spent three years in high yield credit underwriting at JPMorgan.

About Ares Capital Corporation

Ares Capital is a closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. With offices in Atlanta, Chicago, Los Angeles, New York and Washington, D.C., Ares Capital is a specialty finance company that provides integrated debt and equity financing solutions to U.S. middle-market companies. Ares Capital invests primarily in first- and second-lien loans and mezzanine debt, which in some cases includes an equity component. To a lesser extent, Ares Capital also makes equity investments. Ares Capital is externally managed by Ares Capital Management LLC, a wholly owned subsidiary of Ares Management LLC, a global alternative asset manager and a Securities and Exchange Commission registered investment adviser. As of June 30, 2011, Ares Management LLC had approximately $41 billion of committed capital under management. For more information, visit

About La Paloma

La Paloma was constructed by Pacific Gas & Electric Co. and began commercial operations in 2003. La Paloma is one of the most efficient natural gas-fired projects in the California market and is strategically located to serve both northern and southern California power markets.

About Rockland Capital

Rockland Capital, a private equity firm founded in 2003, is focused on the acquisition, optimization and development of companies and projects in the North American power sector. The firm manages Rockland Power Partners and Rockland Capital Energy Investments and has offices in Houston and New York. For more information, visit


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