KKR and Suez Environnement subsidiary United Water, which provides water and environmental services, have agreed to provide $43 million to Pennsylvania-based Middletown Borough Authority.
The capital will be used to pay down the borough’s existing debt and pension liability as well as improve its finances.
According to terms of the agreement, KKR and United Water will manage and operate the borough’s water and wastewater system for 50 years starting on January 1, 2015.
The joint venture has also committed to providing another $83 million for the system infrastructure improvements. Investing from its infrastructure fund, KKR will fund 90 percent of the transaction while United Water takes up the remaining 10 percent.
The KKR/United Water partnership with the borough is similar to the one the joint venture created with the Municipal Utilities Authority in Bayonne, NJ in December 2012.
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