EQT Infrastructure Fund and Fortistar have agreed to buy Midland Cogeneration Venture from Rockland Capital and GSO Capital Partners. No financial terms were disclosed for the deal, which is expected to close within the next two months. MCV is a 1,500 MW natural gas-fired cogeneration facility located in Midland, Michigan. It was acquired by Rockland and GSO in 2006.
Rockland Capital LLC (“Rockland”) announced today the sale of Midland Cogeneration Venture (“MCV”) to EQT Infrastructure Fund and FORTISTAR. Closing is expected within 60 days, subject to regulatory approvals. MCV is a 1,500 MW natural gas-fired cogeneration facility located in Midland, Michigan.
Financial terms were not disclosed.
Rockland partnered with GSO Capital Partners (“GSO”) in 2006 to acquire a majority interest in MCV along with a significant stake in the facility’s lease. Under ownership of Rockland and GSO, MCV restructured the lease and power purchase agreement, overhauled its commodity hedging program and installed auxiliary steam boilers to enhance operating flexibility.
“When Rockland and GSO purchased interests in MCV, the power purchase agreement was fundamentally flawed and its means of supplying steam was highly inefficient,” said Dave Yeager, Partner at Rockland Capital. “Prior to fixing these problems, MCV had to restructure a complex and restrictive facility lease. MCV provides an excellent example of Rockland’s ability to work out inefficiencies and unlock substantial value for investors.”
Rockland Capital LLC:
Rockland makes investments in the middle-market segment of the North American electric power generation market. The Firm was formed in 2003 and is focused on control investments in financially distressed and operationally challenged power generation assets that can benefit from Rockland’s active management approach. Members of the investment team have worked together executing this strategy since the mid-1990s. In aggregate the team has invested over US$600 million in 20 power investments.
Contact Rockland Capital at (281) 863-9000.