GE finances Rockland’s power plant acquisition

GE Energy Financial Services will lend $50m to private equity firm Rockland to help finance its acquisition of a power generation facility near Chicago.

GE Energy Financial Services is helping finance Rockland Capital’s acquisition of the Elgin Energy Center in Illinois by providing the private equity firm with a $50 million senior secured term loan, GE Energy said in a press release.

Rockland Capital acquired the 484-megawatt (MW) gas-fired plant – along with two other Illinois power plants that comprise a 1,166MW portfolio – from Ameren Corporation in January.

The transaction was the first acquisition for Rockland Power Partners II, a $425 million fund closed in December 2013.

“The Elgin investment marks our first opportunity to serve Rockland Capital as a lead lender, and underscores GE’s ability to lead both contracted and merchant power transactions,” Carl Peterson, managing director and debt origination leader at GE Energy Financial Services, said.

The power plant, which began operating in 2002, sells its capacity in the PJM market, the regional transmission organisation that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia.

ProEnergy Services provides operations and management, while Tenaska Power Services provides additional energy management services to the power plant, according to the statement.

Based in Stamford, Connecticut, GE Energy Financial Services is part of GE’s energy investing business. The unit provides lending for capital-intensive power, oil and gas infrastructure and holds approximately $16 billion in assets.

Founded in 2003, Rockland Capital is a private equity firm focused on the acquisition, optimisation, and development of companies in the North American power sector. In addition to Rockland Power Partners II, the firm also manages Rockland Power Partners and Rockland Capital Energy Investments.