First Reserve sells 10.75 per cent stake in power plant holding company to Siemens
AllAssets USA
Energy specialist private equity firm First Reserve is to sell a 10.75 per cent equity interest and pro-rata funding obligation in Longview Intermediate Holdings to Siemens Financial Services, Inc. The company is an indirect parent of the Longview Power project – a pulverised coal-fired generating facility currently under construction in West Virginia. Financial details were not disclosed. The Longview plant, which secured $1.1bn of construction financing in February 2007, expects to begin commercial operation in early 2011, the firm said.
Mark McComiskey, managing director at First Reserve, said, “SFS's investment in the facility highlights the significant market opportunity that both partners see in the project as well as Siemens' confidence as a leading member of the construction consortium in the timely and successful completion of the project. We are delighted to have them as partners in this project.”
Johannes Schmidt, CEO equity and project finance at SFS, added, "Longview Power is an excellent opportunity for us to comply with our mission: to invest in new highly efficient and, thus, environmentally friendly energy projects. We value First Reserve Corporation as one of the world's leading energy-focused investors. Together we will implement the most efficient energy project in its class."
First Reserve invests exclusively in the energy industry, having
invested approximately $12.5bn in equity. The firm has invested in over 100 platform acquisitions and First Reserve portfolio companies have completed approximately 300 add-on transactions. The firm typically targets companies with enterprise values of up to $10bn.