Stroock Represents a JPMorgan Infrastructure Fund in $840 Million Power Plant Portfolio Acquisition
NEW YORK, May 1, 2008 – National law firm Stroock & Stroock & Lavan LLP is representing a JPMorgan infrastructure fund in the acquisition of a portfolio of seven independent natural gas-fired power generation facilities with a total of 974 megawatts (MW) of capacity from Black Hills Corporation (NYSE:BKH) for approximately $840 million in cash.
A consortium between JPM IIF and its partners, Australian-based funds Utilities Trust of Australia (“UTA”) and The Infrastructure Fund (“TIF”), which are managed by Hastings Fund Management (“HFM”), an Australian-based infrastructure manager, has announced the signing of a definitive purchase agreement for the power plant assets. Zachry Project Management and Consulting, LLC will be operating the portfolio under the supervision of the Consortium.
The Consortium is acquiring six contracted energy facilities with a net capacity of 825 MW in Southern California, Denver/Boulder and Las Vegas, and one 149 MW contracted facility under construction in New Mexico (expected to be completed in June 2008).
The transaction, subject to closing adjustments, is expected to be completed in the third quarter of 2008. It is subject to regulatory approvals and other standard closing conditions.
Corporate partner Richard Madris said, “We are delighted to have represented the fund on this important deal for the Consortium in what turned out to be a very competitive bidding process. The spirit of cooperation among the parties and their advisors made this a smooth transaction. This transaction underscores the strength of Stroock in the area of representing infrastructure funds and private equity funds in their transactions, including in the M&A Infrastructure/Power sector.”
Corporate partners Richard Madris, Brad Kulman and Robert Guazzo, Energy partner Michael Shenberg, Tax partner Jeffrey Uffner, ERISA partner Mark Wintner, and associates Solomon Abuliak and Brian Greene worked on the transaction and its structuring.
Royal Bank of Scotland is providing financing to the Consortium for the transaction. Lehman served as financial advisor to the Consortium. In addition, Linklaters represented Hastings and the Consortium, and Hogan & Hartson provided regulatory advice to the Consortium; Morgan Lewis represented Black Hills. Credit Suisse served as financial advisor for the seller.