Energy Investors Funds sells stake in Queens power plant

Energy Investors Funds has sold an indirect stake in the Astoria Energy II power plant, a 550 megawatt gas fired combined cycle generation facility in Queens, New York, to Gulf Pacific Power. In 2008, the power plant was awarded a 20 year tolling agreement by the New York Power Authority for the energy and capacity of the plant.

Press Release

Energy Investors Funds (“EIF”), an established private investment firm focused on the energy sector, announced today that it has sold an indirect stake in the Astoria Energy II power plant, a 550 MW natural gas-fired combined cycle generation facility located in Queens, New York (“Astoria II”), to Gulf Pacific Power, LLC, a fund managed by an affiliate of Harbert Management Corporation. Terms of the deal were not disclosed.

In 2008, Astoria II was awarded a 20-year tolling agreement by the New York Power Authority (“NYPA”), a New York State public authority, for the energy and capacity of the plant. NYPA’s customers include several major governmental customers in the New York metropolitan area. In 2009, United States Power Fund III, L.P., a fund managed by EIF, invested in Astoria II at the start of construction. Construction on Astoria II was completed in 2011.

“Astoria II has been a wonderful investment for EIF and our limited partners,” said Warren MacGillivray, Partner with EIF. “This project has been an important part of New York City’s power infrastructure and has provided NYPA with a reliable stream of power for its customers in a much cleaner, more economic fashion.”

At the time of EIF’s initial investment, the other equity partners in Astoria II were: SNC-Lavalin Generation Inc., SUEZ Energy Astoria II, LLC, a subsidiary of GDF SUEZ Energy North America, Inc., and JEMB Astoria II, LLC. Approximately $1 billion in financing for the project was raised with 13 international financial institutions jointly led by Natixis, WestLB AG, Export Development Canada, CA-CIB, Societe Generale Americas Securities, Bank of Tokyo-Mitsubishi UFJ and Union Bank N.A.

“EIF has been a wonderful partner and was instrumental in getting this project from conception through construction,” said Chuck McCall, Chief Executive Officer of Astoria II. “We appreciate all the help and guidance they’ve provided and look forward to continuing our work with our new partners.”

About Energy Investors Funds
EIF was founded in 1987 as one of the first private equity fund managers focused on the independent power and electric utility industry. EIF’s investment strategy is to create geographically and technologically diversified portfolios of electric power-related assets across the power generation, transmission, and midstream sectors that are expected to provide superior risk-adjusted equity returns with current cash flow and capital appreciation. EIF has raised over $5 billion in equity capital and currently manages multiple private equity funds from its offices in Boston, New York, and San Francisco. These funds have made over 100 diversified investments with an underlying asset value greater than $15 billion. EIF-managed funds own approximately 4,000 MW of capacity in facilities that are currently operating or under construction and an additional 6,000 MW in facilities that are in various stages of development. EIF closed on its latest fund, EIF United States Power Fund IV, L.P., in October 2011, with $1.713 billion in capital commitments. For more information, visit www.eif.com.