Rockland Capital Announces Sale of Midland Cogeneration Venture
HOUSTON, TX – March 18, 2009 — Rockland Capital, LLC (“Rockland”) announced today the sale of Midland Cogeneration Venture (“MCV”) to EQT Infrastructure Fund and Fortistar. Closing is expected within 60 days, subject to regulatory approvals. MCV is a 1,500 MW natural gas-fired cogeneration facility located in Midland, Michigan.
Financial terms were not disclosed.
Rockland partnered with GSO Capital Partners (“GSO”) 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 program 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,” said 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.
About Rockland Capital
Rockland Capital, a private equity firm founded in 2003, is focused on the acquisition, optimization and development of companies and projects in the North American power sector. The firm manages Rockland Power Partners and Rockland Capital Energy Investments and has offices in Houston and New York.