First Reserve Corp. has agreed to sell a 10.75% equity interest and pro-rata funding obligation in Longview Intermediate Holdings to Siemens Financial Services. No financial terms were disclosed for the deal, which is expected to close within 60 days. Longview is part of GenPower Holdings, a power generation platform formed in October 2006 by First Reserve and GenPower LLC.
First Reserve Corporation (“First Reserve”) and Siemens Financial Services, Inc. announced today the execution of definitive agreements for the sale of a 10.75% equity interest and pro-rata funding obligation in Longview Intermediate Holdings B, LLC (“Holdings”) to Siemens Financial Services, Inc. (“SFS”). Holdings is an indirect parent of the Longview Power project (“Longview“), a supercritical, pulverized coal-fired generating facility currently under construction in West Virginia. Closing is subject to Federal Energy Regulatory Commission approval and is expected within 60 days. Terms of the investment were not disclosed.
“SFS’ investment in the facility highlights the significant market opportunity that both partners see in the project as well as Siemens’ confidence as a leading member of the construction consortium in the timely and successful completion of the project. We are delighted to have them as partners in this project,” said Mark McComiskey, Managing Director at First Reserve Corporation.
Johannes Schmidt, CEO Equity & Project Finance at SFS added, “Longview Power is an excellent opportunity for us to comply with our mission: To invest in new highly efficient and thus environmentally friendly energy projects. We value First Reserve Corporation as one of the world’s leading energy-focused investors. Together we will implement the most efficient energy project in its class.”
The Longview plant, located in Maidsville, West Virginia, broke ground in the second quarter of 2007 and expects to begin commercial operation in early 2011. The project is being constructed by a consortium of Siemens Power Generation, Inc. and Aker Kvaerner Songer, Inc. Foster Wheeler North America Corp. is supplying the supercritical boiler to the project.
About GenPower Holdings, L.P.
GenPower, LLC and First Reserve, a leading global private equity firm, formed GenPower Holdings, L.P. in October 2006 to pursue the development, ownership, acquisition and operation of power generation facilities in the United States and abroad. Longview Power is the first major investment by the joint venture. For more information on GenPower Holdings, L.P. and Longview Power, LLC, please visit our website at www.genpower.net.
About First Reserve
First Reserve is the world’s leading private equity firm in the energy industry. For more than 25 years, it has invested solely in the global energy industry, and has developed an unparalleled franchise, utilizing its broad base of specialized energy industry knowledge as a competitive advantage. First Reserve invests strategically across a wide range of energy industry sectors, developing a portfolio that is diversified across the energy value chain, backing talented management teams and building value by building companies. Further information is available at www.firstreserve.com
About Siemens Financial Services (SFS)
Siemens Financial Services (SFS) is an international provider of financial solutions in the business-to-business area. With about 1,900 employees and an international network of financial companies coordinated by Siemens Financial Services GmbH, Munich, we support Siemens as well as non-affiliated companies, focusing on the three sectors of energy, industry and healthcare. We finance infrastructure, equipment and working capital and act as a competent manager of financial risks within Siemens. By leveraging our financing expertise and our industrial know-how we create value for our customers and help them strengthen their competitiveness. For more information see: www.siemens.com/finance.
Siemens Financial Services, Inc. (SFS Inc.) is a leading provider of business-to-business financial services in the United States. SFS is a committed business ally that combines deep industry expertise with integrated financing solutions to enhance the efficiency, productivity, and competitiveness of its customers. The company, based in Iselin, NJ, enables business expansion for thousands of customers in the healthcare, energy, and industrial sectors by providing customized solutions that range from equipment financing and working capital to project and export finance, and insurance solutions. Further information on Siemens Financial Services in the United States: www.usa.siemens.com/financial
Siemens AG (NYSE: SI) is a global powerhouse in electronics and electrical engineering, and operates in the industry, energy and healthcare sectors. For more than 160 years, Siemens has built a reputation for leading-edge innovation and the quality of its products, services and solutions. With 428,000 employees in 190 countries, Siemens reported worldwide sales of $116.6 billion in fiscal 2008. With its U.S. corporate headquarters in New York City, Siemens in the USA reported sales of $22.4 billion and employs approximately 69,000 people throughout all 50 states and Puerto Rico. For more information on Siemens in the United States, visit www.usa.siemens.com