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Ormat completes US$24.9m tax equity transaction with JPM Capital

Ormat completes US$24.9m tax equity transaction with JPM Capital Steamboat Springs plant of Ormat, Nevada (source: Commons/ Wikimedia)
Alexander Richter 7 Feb 2011

Ormat Technologies completes $24.9 million tax equity transaction with JPM Capital Corporation, which acquires a 30% of membership interest in OPC from Ormat Nevada for power plants located in Nevada.

In a release, “Ormat Technologies, Inc. (NYSE: ORA) announced today that its subsidiary, Ormat Nevada Inc. (“Ormat Nevada”) has completed a $24.9 million tax equity transaction with JPM Capital Corporation (“JPM”).

JPM acquired from Ormat Nevada 30% of the Class B membership interests in OPC LLC (“OPC”), a Delaware limited liability company. OPC was initially established by Ormat Nevada to hold its Desert Peak 2, Steamboat Hills, Galena 2, and Galena 3 geothermal power plants (all located in Nevada) jointly with Morgan Stanley Geothermal LLC, an affiliate of Morgan Stanley & Co. Incorporated, and Lehman-OPC LLC, as institutional equity investors. Ormat acquired all of Lehman’s Class B membership interests in OPC on October 30, 2009 for a purchase price of $18.5 million and recorded a pre-tax gain of $13.3 million. Ormat Nevada will not record any gain from the acquisition by JPM of its Class B membership interests in OPC.

Dita Bronicki, CEO of Ormat Technologies, said: “We are happy about the opportunity to establish long lasting investment relations with sophisticated investors such as JPM in our projects, and appreciate the confidence JPM has in our technology and in our ability to operate geothermal assets in a sustainable manner”.

Source: Ormat release via PR Newswire