Terra-Gen finalizes refinancing and sold 40% stake to Global Infrastructure Partners

Alexander Richter 1 Nov 2009

In a US$240 million refinancing of its Terra-Gen Power Holdings renewable energy portfolio, ArcLight Capital sold a 40% equity stake to Global Infrastructure Partners.

According to recent news, ArcLight Capital has completed the US$240 million refinancing of its Terra-Gen renewable portfolio and sold a 40% equity stake to Global Infrastructure Partners.

In an announcement by the company, Global Infrastructure Partners (GIP), an independent $5.64 billion
infrastructure investment fund, announced that it has reached agreement to acquire up to a 40% convertible preferred interest in Terra-Gen Power Holdings, LLC (Terra-Gen) from ArcLight Capital Partners, LLC (ArcLight). Financial details of the investment were not disclosed.

Terra-Gen is a leading US renewable power generation company that owns or operates over 800 megawatts (MW) of renewable power facilities, including geothermal, wind and solar projects across a broad area of the United States. Terra-Gen also has over 5,000 MW of renewable energy projects under development. Following completion of this transaction, which is expected by year-end, ArcLight and GIP will be partners in driving the continuing growth of Terra-Gen.

Adebayo Ogunlesi, Chairman and Managing Partner of GIP, commented: “We are very pleased to be working with ArcLight and the outstanding Terra-Gen management team to help meet the growing demand for clean, renewable energy in the United States. Their capabilities are an ideal complement to GIP`s operational strengths and our expertise in the power sector.”

Jonathan Bram, the GIP Partner leading the transaction, added: “This investment represents an excellent opportunity for GIP. In Terra-Gen, we have a solid portfolio of operating renewable projects combined with a unique growth platform that includes each of the three most attractive clean energy technologies.”

Credit Suisse acted as financial advisor to GIP”

Source: Project Finance, Reuters