Energy-focused private equity firm First Reserve has sold a 10.75 percent equity stake and pro-rata funding obligation in an indirect parent company of its $2 billion Longview Power Plant project in West Virginia.
The buyer, Siemens Financial Services, is an affiliate of a member of the construction consoritium for the 695-megawatt coal fired power generation facility, which commenced construction in early 2007.
Financial terms of the transaction were not disclosed, but in March 2007, First Reserve said it had secured $1.1 billion of construction financing for the project and that its project cost was $1.8 billion.
An April 2007 deal profile by Project Finance reported the total project size at more than $2 billion, with a $930 million equity component, of which $500 came from First Reserve Fund XI.
The sale of the equity stake is subject to Federal Energy Regulatory Commission approval, which is expected within 60 days.
The Longview Power Plant is still under construction and is expected to be come operational in 2011. It is being constructed by a consortium of Siemens Power Generation and heavy construction provider Aker Kvaerner Songer.
First Reserve declined to comment.