Stamford, Conn., July 12, 2010 — ArcLight Capital Partners, LLC, through its wholly-owned affiliate AL Sandersville Holdings, LLC, has acquired a 640-MW generation facility located in Sandersville, Georgia from KGen Power Corporation for $130 million.
GE Energy Financial Services, a unit of GE, closed financing as the lead lender of the $98 million in senior secured credit facilities partially financing the acquisition.
Built in 2002, using eight 80-MW GE simple-cycle gas turbines, the Sandersville power plant supplies power into the southeastern power market, particularly Georgia, during periods of peak demand or supply volatility.
Sandersville is strategically located near four other facilities in Georgia owned by ArcLight through its affiliate Mackinaw Power, LLC, which have an aggregate capacity of 1,887 MW.
Combined with Sandersville, this portfolio represents a more than 2,500-MW strategic platform making it the second largest independent power producer in the state, with the capacity to meet the peak demand of a city with a population of 450,000.
“This asset is an important addition to our southeast gas power generation facility portfolio that is well positioned to benefit from the current macroeconomic recovery and pending energy and carbon legislation, as well as the unconventional gas boom in the US,” said Dan Revers, Managing Partner of ArcLight.
GE Energy Financial Services’ affiliate, GE Capital Markets, Inc., acted as sole lead arranger. Siemens Financial Services, Inc. joined GE Energy Financial Services in providing the $98 million in credit facilities comprised of a $78 million term loan and a $20 million letter of credit. Additional financial details of the transaction were not disclosed.
“This transaction demonstrates GE Energy Financial Services’ deep expertise in power markets across the United States to provide debt financing for customers throughout the energy sector,” said Matt O’Connor, Managing Director, Financial Institutions Group at GE Energy Financial Services. “We applied our energy expertise to assess the southeastern power market which allowed us to structure and lead arrange this financing in a way that helps ArcLight grow and continue meeting power demand in the region.”
The GE unit has a debt portfolio of nearly $7 billion, spanning power, oilfield services, pipelines, gas storage, refining, exploration and production, mining and fuel distribution. GE Capital Markets, Inc. provides arranging and syndication for many of these facilities.
ArcLight is one of the world’s leading energy investment firms with more than $6.8 billion under management. ArcLight’s investment team has extensive energy investing experience, industry relationships, and asset level knowledge. ArcLight is headquartered in Boston with offices in New York City, London and Luxembourg.