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For Immediate Release: |
Contact: |
Energy Investors Funds closes on $300 million recapitalization of its United States Power Fund
BOSTON, MA (April 19, 2007) Energy Investors Funds (“EIF”), an established private equity fund manager that invests in the energy and electric power sector, today announced that it has successfully closed on a $300 million recapitalization of its United States Power Fund, L.P. (“USPF”). Lehman Brothers was retained by EIF as the sole arranger and bookrunner, and underwrote the financing.
USPF Holdings, LLC (“USPF Holdings”), a wholly-owned subsidiary of USPF, issued senior secured credit facilities consisting of a $288 million seven-year term loan and a $12 million seven-year letter of credit facility. The credit facilities were rated “Ba2” and “BB” by Moody’s and Standard & Poor’s, respectively. The credit facilities priced at LIBOR plus 175 basis points, reflecting the strong level of investor demand. Proceeds from the recapitalization were used to fund a cash distribution to the partners of USPF, to pay transaction costs and to provide for general liquidity.
The transaction involved leveraging the equity cash flows interests of USPF Holdings in seven generation projects and one transmission project. “We assembled a portfolio of eight power-related assets that benefit from long-term off-take contracts, creditworthy contract counterparties, geographic diversity and fuel source diversity including electric transmission,” said Mark D. Segel, EIF’s Partner who led the recapitalization effort. “The leveraged loan market perceived these positive attributes, resulting in an oversubscribed deal and favorable pricing terms.”
“The recapitalization represented an attractive means of providing our Limited Partners in United States Power Fund with a large cash distribution at closing as well as meaningful ongoing dividends,” added Herb Magid, Managing Partner of EIF.
About Energy Investors Funds
Energy Investors Funds was founded in 1987 as the first private equity fund manager dedicated exclusively to the independent power and electric utility industry. Its consistent, proven investment strategy is to create geographically and technologically diversified portfolios of electric power-related assets that provide superior risk-adjusted equity returns with current cash flow and capital appreciation. As an investment manager Energy Investors Funds seeks to mitigate commodity risk (fuel and electricity) by focusing primarily on acquiring power assets with long-term off-take contracts. Energy Investors Funds has mobilized over $1.75 billion in capital, and currently manages five private equity funds from its offices in Boston, New York, and San Francisco. These funds have made over 80 diversified investments with a combined underlying asset value exceeding $5 billion. For more information visit www.eif.com.
