Marubeni-led group closes N.J. power plant deal
September 14, 2016
A group of investors led by a subsidiary of Marubeni Corp. has closed on the acquisition from LS Power of a majority interest in a New Jersey power plant.
In the deal, subsidiaries of Marubeni, Ullico Investment Advisors, Inc.; Prudential Financial, Inc.; Arctic Slope Regional Corp., and Sumitomo Corp. acquired West Deptford, a 669 MW combined-cycle gas turbine power plant.
LS Power, which was advised on the sale by Credit Suisse and Whitehall Capital Markets, is retaining an interest in the facility.
Marubeni, which acquired a 35% interest, was advised by Dentons; ASRC was advised by Munger Tolles & Olson; Prudential was advised by Baker Botts; Sumitomo subsidiary Perennial Power Holdings was advised by Norton Rose Fulbright; and Ullico used an internal legal counsel.
"We are excited at the opportunity to be investing in a major power operation in the PJM market, and we look forward to working with LS Power and the other operating partners," Shigenobu Hamada, president of Perennial Power, said in a statement.
The West Deptford plant is located just east of Philadelphia in the supply-constrained Eastern Mid-Atlantic Area Council (EMAAC) region.
The water-cooled plant entered commercial operation in November 2014 and operates under a five-year revenue put energy hedge provided by Morgan Stanley, covering 75% of nameplate capacity.
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