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GE Connects Capital and Equipment for Saguaro Power Company’s 105-Megawatt Gas-Fired Co-Generation Plant in Nevada

  GE Connects Capital and Equipment for Saguaro Power Company’s 105-Megawatt
  Gas-Fired Co-Generation Plant in Nevada

Business Wire

HENDERSON, Nev. -- January 6, 2014

Supporting a power plant that uses GE technology to deliver reliable,
lower-emission energy while expanding its generation portfolio, GE Energy
Financial Services - through GE Capital Markets, Inc. – served as the lead
arranger in a $97.4 million senior secured credit facility for Saguaro Power
Company’s 105-megawatt combined cycle cogeneration project in Nevada.

Affiliates of NRG Energy (NYSE: NRG) and a partnership between MSD Capital,
L.P. and Paragon Energy Holdings each maintain 50 percent ownership in the
plant, located in Henderson. In addition to GE Energy Financial Services, CIT
Corporate Finance, Energy participated in the credit facility as a lender and
Documentation Agent. Additional financial details of the transaction were not
disclosed.

A key advantage of the plant is its close proximity, 16 miles, from a major
power load pocket, the world-famous Las Vegas Strip. Saguaro’s location
minimizes transmission costs and constraints while supporting the growth of
Las Vegas and surrounding areas. The plant has been in commercial operation
since 1991.

The financing provides liquidity for working capital and general corporate
purposes. Saguaro Power Company chose GE Energy Financial Services for its
proven execution success, in-depth knowledge of inherent risks to qualifying
cogeneration facilities, and its ability to lead and structure complex
financing transactions. In addition to this financing, GE previously provided
Saguaro with two robust, durable Frame 6B gas turbines, offering proven
reliability, and one GE SAXC Steam Turbine, which provides high reliability
and sustained high efficiency.

“This cogeneration project illustrates GE’s unique ability to provide both
energy capital and technology,” said Carl Peterson, a managing director and
Debt Origination leader at GE Energy Financial Services. “Our growth in power
plant debt has also recently included loans for the 700-megawatt CPV
Woodbridge Energy Center and 584-megawatt Nelson Energy Center.”

Commenting on behalf of the sponsors of the Saguaro Power Company, Brian
Redmond, a managing director at Paragon Energy Holdings, stated, “The
additional financing will provide us with the financial flexibility to
continue operating a gas-fired co-generation plant that is integral to the
operations of our steam customers and delivers electricity at a key location
in NV Energy’s power grid.”

Mike Lorusso, Group Head of CIT Corporate Finance, Energy, added, “CIT is
committed to financing cleaner and more efficient power generation projects
and is pleased to serve as Documentation Agent for this transaction.”

Cogeneration, the simultaneous production of electricity and heat using a
single fuel source such as natural gas, harnesses heat that would otherwise be
wasted. This can result in higher thermal efficiency; also, carbon dioxide
emissions can be substantially reduced. The Saguaro Power Company’s plant uses
heat recovery steam generators to economically produce process-critical steam
to adjacent chemical manufacturing and food processing plants.

The plant maintains a power purchase agreement to supply Nevada Power Co., a
subsidiary of NV Energy Inc., with 90 megawatts of energy through April 2022.
Separate contracts that also run through April 2022 are in place for the steam
generated at the plant.

GE Energy Financial Services holds equity and debt investments in power
projects with a combined capacity of 30 gigawatts, equivalent to the installed
generating capacity of Norway. The GE unit offers flexible financial
structures ranging from common and preferred equity to debt and acquisition
finance.

NOTE TO EDITORS: Photo of Saguaro Power Company power plant is available here.

About GE Energy Financial Services

GE Energy Financial Services—GE’s energy investing business—works as a
builder, not just a banker, to help meet the world’s power and fuel needs.We
offer more than money—expertise—for essential, long-lived and
capital-intensive power, oil and gas infrastructure—GE’s core
business.Drawing on GE’s energy technical know-how, financial strength and
risk management, we see value where others don’t and take on our customers’
toughest challenges with flexible equity and debt transaction
structures.Based in Stamford, Connecticut, GE Energy Financial Services holds
approximately $18 billion in assets. More information:
www.geenergyfinancialservices.com. Follow GE Energy Financial Services on
Twitter: @GEEnergyFinServ

About GE

GE (NYSE:GE) works on things that matter. The best people and the best
technologies taking on the toughest challenges. Finding solutions in energy,
health and home, transportation and finance. Building, powering, moving and
curing the world. Not just imagining. Doing. GE works. For more information,
visit the company's website atwww.ge.com.

About NRG

NRG is leading a customer-driven change in the U.S. energy industry by
delivering cleaner and smarter energy choices, while building on the strength
of the nation’s largest and most diverse competitive power portfolio. A
Fortune 500 company, we create value through reliable and efficient
conventional generation while driving innovation in solar and renewable power,
electric vehicle ecosystems, carbon capture technology and customer-centric
energy solutions. Our retail electricity providers – Reliant, Green Mountain
Energy, Energy Plus and NRG Residential Solutions – serve more than 2 million
residential and commercial customers throughout the country. More information
is available at www.nrgenergy.com. Connect with NRG Energy on Facebook and
follow us on Twitter @nrgenergy.

About MSD Capital, L.P.

Founded in 1998, MSD Capital is the private investment firm for Michael Dell
and his family. The firm currently manages in excess of $13 billion in assets
utilizing a multi-disciplinary investment strategy encompassing traditional
private equity activities, real estate and investments in publicly-traded
securities, in each case with the objective of building an investment
portfolio focused on maximizing long-term capital appreciation. MSD Capital's
team operates from the firm's offices in New York and Santa Monica. Additional
information is available at www.msdcapital.com.

About CIT Corporate Finance, Energy

CIT Corporate Finance, Energy provides value-added financing products and
services to growth-oriented companies throughout the energy sector, including
oil & gas and power. By combining extensive industry experience, structuring
expertise and underwriting capacity, we create comprehensive solutions to our
clients’ most critical strategic and funding needs. CIT Corporate Finance,
Energy currently manages a large, diverse portfolio, which includes
investments in all asset classes across the energy sector. cit.com/energy

About Paragon Energy Holdings

Founded by a group of senior energy executives with expertise in the wholesale
energy markets, Paragon owns and manages power and gas assets, and provides a
wide range of buy-side and sell-side advisory services to energy sector
stakeholders. Paragon has a proven track record in developing, financing, and
optimizing energy assets. In addition, Paragon has an in-depth understanding
of gas and power markets and asset valuation techniques that is supported by
real-world experience in implementing restructuring strategies and
asset-management solutions. In its advisory engagements, Paragon represents
stakeholders and prospective investors in major energy financings, asset
dispositions and restructurings. Paragon clients and partners include leading
energy companies, Fortune 10 financial services companies, institutional
investors, regulated utilities and private investment firms.

Contact:

GE Energy Financial Services
Andy Katell, 203-961-5773
 
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