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Orion backs US terminal facility, nears fund close

The New York-based energy investor is said to be nearing a close on its inaugural infrastructure debt fund, which is targeting $750m.

Orion Energy Partners has provided just under $100 million to finance the expansion of one of the largest port terminals in the south-eastern US.

The New York-based firm is also nearing a final close for its inaugural infrastructure debt fund, which is expected to exceed its $750 million target this summer, sources familiar with the matter told Infrastructure Investor . The debt agreement with Keystone Properties was made through the fund it is raising.

The financing Orion provided will expand the facilities and services of the Keystone Jacksonville Terminal, a 110-acre deep water, intermodal commodity terminal in Jacksonville, Florida. One project identified for investment is the addition of a second mooring facility at the terminal.

Orion provides “access to needed capital” for mid-market energy infrastructure companies in North America, the firm said in a statement about the deal on Monday.

The Orion Energy Credit Opportunities Fund II, which launched at the end of 2015, is targeting $750 million. A source told Infrastructure Investor in April that Orion had raised over $500 million.

The fund is targeting the North American energy infrastructure sector, including midstream oil and gas, power and asset services, such as drill equipment rentals. It has collected investments from a mix of US, European and Australian pensions, and is targeting gross returns of 15-18 percent and net returns of 12-15 percent.

Orion is looking for investments ranging between $25 million and $200 million and has already closed on two deals, only one of which has been disclosed, the source said. Last September, drilling equipment rental service Tiger Rentals Group agreed to a $110 million senior first lien term loan with the firm.

Orion Energy Partners declined to comment for this story.