Rockland Capital has announced the sale of Midland Cogeneration Venture, a natural gas-fired cogeneration facility located in Midland, Michigan, to EQT Infrastructure Fund and Fortistar
Rockland Capital has announced the sale of Midland Cogeneration Venture, a natural gas-fired cogeneration facility located in Midland, Michigan, to EQT Infrastructure Fund and Fortistar.
Financial terms were not disclosed. Closing is expected within 60 days, subject to regulatory approval.
Rockland partnered with GSO Capital Partners in 2006 to acquire a majority interest in MCV along with a significant stake in the facility’s lease. Under ownership of Rockland and GSO, MCV restructured the lease and power purchase agreement, overhauled its commodity hedging programme and installed auxiliary steam boilers to enhance operating flexibility.
‘When Rockland and GSO purchased interests in MCV, the power purchase agreement was fundamentally flawed and its means of supplying steam was highly inefficient,’ says Dave Yeager, Partner at Rockland Capital.
‘Prior to fixing these problems, MCV had to restructure a complex and restrictive facility lease. MCV provides an excellent example of Rockland’s ability to work out inefficiencies and unlock substantial value for investors.’
Rockland makes investments in the middle-market segment of the North American electric power generation market.
