ArcLight gets $73m in financing from GE

GE Energy Financial Services has completed the financing of $73 million in senior debt for a portfolio of eight energy projects owned by private equity firm ArcLight Capital Partners.

Boston-based ArcLight Capital Partners, a private equity firm focused on the energy sector, has received $72.8 million (€61.0 million) in senior debt from GE Energy Financial Services and GE Capital Markets.

The US conglomerate underwrote and structured the debt facility for Katahdin Power Holdings I and II, subsidiaries of ArcLight. The financing will allow ArcLight to monetize some of its holdings, as well as add or remove assets from the debt facility.

According to a statement, the initial assets in the debt instrument are seven power plants and a transmission line. The specific ArcLight assets included in the facility were not disclosed.

In March of 2005, GE structured and underwrote the acquisition of the Lincoln Generating Facility, a 640-megawatt, gas-fired peaking power plant in Manhattan, Illinois.

That asset was purchased by ArcLight Energy Partners II, a vehicle which raised $1.6 billion and closed in June of 2004. Limited Partners in the fund include the Caisse de Dépôt et Placement du Québec, the University of Texas, Adams Street Partners and the California Public Employees Retirement System.

Like the first fund, the second vehicle is investing in coal, natural gas and power generation, as well as the electric and gas transmission and distribution industries. The firm, which was founded in 2001, invested its first fund in 18 portfolio deals over the course of two years.