Marathon Capital, LLC announces the final closing and sale of Allco Finance Group Tehachapi assets
July 16th, 2008
Marathon Capital, LLC announced today, the closing and sale of Allco Finance Group's
("AFG") Tehachapi wind development assets to California Highwind Power, LLC, an affiliate
of ArcLight Capital Partners, LLC for $325 million in cash. California Highwind Power will be
managed by Terra-Gen Power, LLC. The AFG assets included 24 MW's of commissioned
assets, more than 3,100 MW's of planned wind development, together with key land
control, critical transmission queue positions and a 1,550 MW long term off-take agreement
with Southern California Edison. The full build-out of the Tehachapi project will occur over
the next 8-10 years. Marathon Capital, LLC represented AFG on an exclusive basis for this
transaction. J.P. Morgan Securities Inc. represented ArcLight.
Nick Bain, Head of Infrastructure stated: "We are delighted with the outcome of this very
competitive and successfully executed sale. It is disappointing to have to divest a
one-of-a-kind project like Tehachapi. Nonetheless, we are pleased with the financial results
of the sale, which was managed jointly by our financial adviser, Marathon Capital, and
Allco's infrastructure team. ArcLight/Terra Gen now has the opportunity to take this
exciting project forward towards full build out."
Dan Revers, Managing Partner of ArcLight Capital Partners, commented that "the AFG
Tehachapi wind assets are an excellent strategic fit and growth platform for our existing
portfolio of wind, geothermal and solar generating assets in Terra-Gen Power, the majority
of which are based in California."
Jim Pagano, CEO of Terra-Gen Power, stated that "the team here at Terra-Gen Power is
excited about taking over management of this flagship project in California's renewable
energy industry. Terra-Gen Power already owns and operates over 185 MW of existing
wind generating projects in Tehachapi wind and is committed to further developing this
critical wind resource."
Ted Brandt, CEO of Marathon Capital stated that "the AFG auction
process attracted a significant number of participants from all over
the world. However over the course of our process, we were able to
cull the list down to a small group of highly qualified finalists. The
ArcLight/Terra-Gen team executed brilliantly, especially in the final
days and ended up the winner."
Established in 1999, Marathon Capital, LLC is an experienced
investment banking firm focused on the global energy and
infrastructure markets. Marathon is headquartered in Bannockburn,
Illinois and its web site is
www.marathon-cap-com.
About Allco Finance Group
Allco Finance Group ("Allco") is a fully integrated global financial services business, listed
on the Australian Stock Exchange (ASX: AFG) and specializing in structured asset finance,
specialized funds management and debt funding.
About Terra-Gen Power, LLC
Terra-Gen Power is a leading renewable energy company headquartered in New York, NY
with offices in Reno, Nevada. Terra-Gen owns significant interests in wind, geothermal and
solar assets. Terra-Gen provides project development, operation, maintenance and
management services. Terra-Gen Power is owned by funds managed by ArcLight Capital
Partners and management. More information about Terra-Gen can be found at
www.terra-genpower.com.
About ArcLight Capital Partners, LLC
ArcLight is one of the world's leading energy investment firms with more than $6.8 billion
under management. ArcLight's investment team has extensive energy investing
experience, industry relationships, and asset level knowledge. ArcLight is headquartered in
Boston, Massachusetts with offices in New York City, London and Luxembourg. More
information about ArcLight can be found at
www.arclightcapital.com.
For additional information please contact Ted Brandt.
Ted Brandt - Managing Director at 847-574-2677 -
tbrandt@marathon-cap.com
Gregg Elesh - Managing Director at 847-574-2676 -
gelesh@marathon-cap.com
Ari Pribadi - Vice President at 847-574-2681 -
apribadi@marathon-cap.com |
