GE finances and underwrites US power plant acquisition

29 March 2005 – GE Commercial Finance Energy said today it had structured and underwritten the financing of two private equity funds’ acquisition of the Lincoln Generating Facility, a power plant in Illinois.

ArcLight Energy Partners Fund II, L.P. and Tyr Capital, private equity investors, acquired the Lincoln Generating Facility from Allegheny Energy Supply. ArcLight Energy Partners Fund II, L.P. engaged Energy Financial Services to structure and underwrite $143.9m in debt to partially fund the acquisition. The financing comprised $122m in senior secured term loans and up to $21.9m in letters of credit.

Lincoln is a 640 MW gas-fired, peaking power plant in Manhattan, Ill. It sells its generation capacity, energy output, and ancillary services to a local utility.
“GE Commercial Finance structured a cutting-edge financing for this power asset that fully satisfies the expectations of both the seller and our equity investors,” said Robb E. Turner, Senior Partner of ArcLight Capital Partners, LLC, a leading private electric power and investment firm.

“Completed in a highly competitive market, this transaction drew on our market, technical, structuring and distribution expertise in power and energy to maximize value for lenders and equity investors,” said Tony Shizari, Managing Director and debt business leader, Energy Financial Services. EFS’ Debt Products Group provides senior secured project and corporate debt in the United States and Latin America with select equity investments in Latin America.