Energy Investors Funds Acquires Hess Corporation’s 50 Percent Equity Stake
in GE-Powered Newark Energy Center in New Jersey with Financing from Crédit
Agricole, GE and MUFG
NEWARK, N.J. -- June 20, 2014
Energy Investors Funds (“EIF”), an energy-focused private equity firm,
announced today that two EIF-managed funds have indirectly acquired an
additional 50 percent ownership stake in the Newark Energy Center from Hess
Corporation (NYSE: HES) using a $590 million loan from Crédit Agricole
Corporate and Investment Bank, GE unit (NYSE: GE) GE Energy Financial Services
and Mitsubishi UFJ Financial Group (MUFG). EIF-NEC, LLC, an entity jointly
owned by the two EIF-managed funds, will use the loan to support the
acquisition, construction and operation of the 705-megawatt power plant, which
is being built using GE’s advanced combined-cycle, natural gas-fired turbine
technology. With this acquisition, EIF-NEC now holds 100% of the equity
interests in the Newark Energy Center. The three lenders served as co-lead
arrangers and joint-book runners. Financial details of the transactions were
The Newark Energy Center sits on 23 acres of brownfield industrial land in New
Jersey, an optimal location with nearby gas supply and electrical
interconnection point. The project has been under construction for nearly two
years and is expected to begin commercial operations in May 2015. It will sell
its energy and capacity into the PJM capacity market. Power Plant Management
Services is managing construction, with NAES Corporation providing operations
and maintenance and Direct Energy undertaking additional energy management
“We’re excited to consolidate our ownership of the Newark Energy Center and
are pleased to work with three longtime relationship banks on the financing of
such a critical new generation resource,” said Keith Derman, a partner at EIF.
“This project will provide the PJM market with a reliable new source of
efficient and environmentally friendly capacity.”
Jim Guidera, managing director and head of energy and infrastructure group for
North America at Credit Agricole CIB added, "Concluding the financing for
EIF’s latest capacity addition to the PJM power market was a success for our
project finance team, and continues our well-established relationship with
Carl Peterson, a managing director and leader of debt origination at GE Energy
Financial Services, noted that this is the sixth thermal debt investment his
group has led in the last year, with a total project capacity exceeding 3,000
“The Newark Energy Center highlights GE’s ability to combine technology and
financial structuring expertise to provide unique solutions that meet our
customers’ needs,” said Peterson.
“We are thrilled that we could deliver the right financing solution and
combine it with a structure attractive to the debt markets,” said Jonathan
Lindenberg, head of project finance for the Americas at MUFG.
The Newark Energy Center will operate as one of the cleanest gas-fired power
plants in the United States, using two GE 7F.05 Gas Turbines and one GE D400
Steam Turbine, and features advanced emissions control technology.The 7F.05
Gas Turbine can start up quickly to produce power with reduced start-up
emissions, helping to enable the integration of renewable energy. The plant
will provide more efficient, flexible and reliable power, helping to reduce
the region’s reliance on older, less efficient power generation plants. GE
will also service the equipment through a long-term contractual service
Producing enough electricity to power approximately 700,000 homes, the project
employs more than 700 construction workers and generates tax revenues for the
city of Newark.
For more details, visit: http://www.newarkenergycenter.com.
Note to Editors:
View a photo of the Newark Energy Center, under construction in New Jersey.
*Trademark of General Electric Company
About Energy Investors Funds
EIF was founded in 1987 as one of the first private equity fund managers
focused on the independent power industry. EIF’s investment strategy is to
create diversified portfolios of energy infrastructure-related assets across
the power generation, transmission, and midstream sectors that are expected to
provide superior risk-adjusted equity returns with current cash flow and
capital appreciation. EIF has raised over $5 billion in equity capital and
currently manages multiple private equity funds from its offices in Boston,
New York, and San Francisco. For more information, visit www.eif.com.
About Crédit Agricole CIB
Credit Agricole CIB is the Corporate and Investment Banking arm of the Crédit
Agricole Group, the world’s fifth largest bank by total assets. The Bank
provides support to clients in large international markets through its network
with a presence in major countries in Europe, the Americas, Asia and the
Middle East. For more information, please visit www.ca-cib.com.
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 $16 billion in assets. More information:
www.geenergyfinancialservices.com. Follow GE Energy Financial Services on
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.
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading
financial groups. MUFG’s services include commercial and investment banking,
trust banking, securities, credit cards, consumer finance, asset management,
and leasing. The group’s operating companies include The Bank of Tokyo
Mitsubishi UFJ, Ltd.(BTMU) and its subsidiary Union Bank. N.A., Mitsubishi UFJ
Trust and Banking Corporation (Japan’s leading trust bank), and Mitsubishi UFJ
Securities Holdings Co., Ltd., one of Japan’s largest securities firms. MUFG’s
shares trade on the Tokyo, Nagoya, and New York (NYSE: MTU) stock exchanges.
For Energy Investors Funds
Alex J. Stockham, 646-251-3736
Senior Vice President, Rubenstein Associates
Crédit Agricole CIB Americas
Mary Guzman, 212-261-7129
Vice President, Corporate Communications
GE Energy Financial Services
Jaclyn Cole, 203-961-2934
Lauren Sambrotto, 212-782-4909
Vice President, Public Relations
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