Shearman & Sterling Represents EQT Infrastructure Limited, FORTISTAR in Purchase of Midland Cogeneration Venture
2 Jun 2009
Howard M. Steinberg, Eliza W. Swann, Patricia G. Hammes, John L. Opar, Jeffrey P. Crandall, Don J. Lonczak, Thomas B. Wilner, David L. Bleich, Jason Y. Pratt, Robert S. LaRussa, Robert N. Freedman, Thankmar Wagner, John Paul Huntington Vigman, Erin Kelly, Oliver Loxley, Andrew S. Feng, Ethan D. Harris, Seth Kerschner, Allison Harris, Kelly Karapetyan, Christopher M. Ryan, Kevin H. Boon

Shearman & Sterling represented EQT Infrastructure Limited and FORTISTAR in their acquisition, and related financing, of Midland Cogeneration Venture Limited Partnership (MCV). EQT Infrastructure and FORTISTAR now hold 70% and 30% of the equity interests, respectively, in MCV.

The debt portion of the acquisition financing closed on May 28, 2009, and consisted of a $415 million term loan and a $100 million working capital/letter of credit facility.

MCV is one of the largest gas-fired cogeneration projects in the United States and its electrical capacity represents approximately 10% of the power consumption for Michigan’s lower peninsula. The majority of MCV’s generation capacity is sold under a long-term power purchase agreement with Consumers Energy Company, Michigan’s second largest electric and gas regulated utility. Additionally, MCV sells steam and electricity to The Dow Chemical Company and steam to Dow Corning Corporation.

EQT Infrastructure is a €1.2 billion infrastructure fund advised by EQT Partners, a global private equity advisory firm founded in 1994 with headquarters in Stockholm, Sweden. The fund invests primarily in existing infrastructure and has the flexibility to invest globally. MCV is the first investment by EQT Infrastructure and the first direct investment by an EQT fund in the United States.

FORTISTAR, headquartered in White Plains, New York, owns and manages power assets and currently has ownership stakes in over 60 projects in North America.

The principal attorneys involved in the transaction are partners Howard Steinberg (New York-Finance Group), Eliza Swann (New York-Mergers & Acquisitions), Patricia Hammes (New York-Finance Group), John Opar (New York-Property), Jeffrey Crandall (New York-Executive Compensation & Employee Benefits), Don Lonczak (Washington, DC-Tax); of counsel Thomas Wilner (Washington, DC-Litigation) and David Bleich (New York-Finance Group); counsel Jason Pratt (New York-Property/Environmental), Robert LaRussa (Washington, DC-Tax) and Robert Freedman (New York-Finance Group); and associates Don Suh (New York-Mergers & Acquisitions), Sawako Miyauchi (New York-Mergers & Acquisitions), Thankmar Wagner (Dusseldorf-Mergers & Acquisitions), John Vigman (New York-Finance Group), Mark Perry (New York-Finance Group), Erin Kelly (New York-Finance Group), Oliver Loxley (New York-Finance Group), Kevin Boon (New York-Finance Group), Andrew Feng (New York-Asset Management), Ethan Harris (Washington, DC-Tax), Lawrence Taylor (New York-Property), Seth Kerschner (New York-Property/Environmental), Logan Marc (New York-Property), Allison Harris (New York-Executive Compensation & Employee Benefits), Kelly Karapetyan (New York-Antitrust), Christopher Le Mon (Washington, DC-Litigation) and Christopher Ryan (Washington, DC-Litigation).

For more information, please contact: Ron Brandsdorfer | New York | T +1.212.848.5081 | .