Second Major Finaning for ArcLight Capital Partners Arranged by GE Energy Financial Services
GE Energy Financial Services announced today that is has completed the financing and syndication, with its affiliate, GE Capital Markets, Inc., of a $72.8 million senior debt facility for a portfolio of eight power and transmission projects owned by ArcLight Capital Partners. This is the second major financing led by GE Energy Financial Services and GE Capital Markets for ArcLight.
In this transaction, Energy Financial Services underwrote and structured the senior debt facility for Katahdin Power Holdings I, LLC and Katahdin Power Holdings II, LLC, subsidiaries of the funds that ArcLight manages. General Electric Capital Corporation is served as the Administrative Agent for the debt facility, while GE Capital Markets was the Sole Lead Arranger and Sole Bookrunner for the syndication, which generated strong investor interest and was completed with substantial oversubscription.
The transaction was structured to enable ArcLight, a leading energy investment firm with more than $2.5 billion under management, to monetize a portion of its holdings and have the flexibility to remove or add assets from the facility. The initial assets in the facility include seven contracted power plants and a transmission line, all of which have investment–grade counterparties. All the assets also have strong operating histories, use proven technology, and are located in various US regions.
"GE Energy Financial Services structured a creative and flexible debt facility to accommodate both our monetization and growth objectives," said Dan Revers, Managing Partner of ArcLight Capital Partners.
"Expanding our debt capital markets capabilities is a key to our growth and a natural extension of our financial services," said Tony Shizari, Managing Director and leader of GE Energy Financial Services' Debt Products group. "This second transaction for ArcLight demonstrates our ability to advise, structure, underwrite and arrange energy debt to meet our customers' needs."
In its first transaction for ArcLight in March 2005, Energy Financial Services structured and underwrote the financing of the private equity funds' acquisition of the Lincoln Generating Facility, a 640–megawatt gas–fired, peaking power plant in Manhattan, Illinois.
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