Wolverine Power Holdings, LLC acquires 100% of the interests in Michigan Power LP, LLC
On December 17, 2015, Wolverine Power Holdings, LLC (“Wolverine”), an affiliate of Rockland Power Partners II, LP, acquired 100% of the interests in Michigan Power LP, LLC, which indirectly owns the Michigan Power Generating Facility (the “Project” or “Michigan Power”).
Michigan Power is a 125 MW fully contracted, natural gas-fired combined cycle cogeneration plant located in Ludington, Michigan. The Project sells 100% of its capacity and electric output to Consumers Energy Company under the terms of a Power Purchase Agreement through 2030. Additionally, Michigan Power sells steam to an adjacent Occidental Chemical Corporation facility under the terms of a Steam Sales Agreement.
“Michigan Power is type of high quality contracted asset that Rockland seeks,” said Jim Maiz, a Partner at Rockland Capital. “While the Power Purchase Agreement offers cash flow predictability and quality, it also presents a number of avenues for value creation via constructive solutions with the counterparty. The pursuit of those types of value creation opportunities is part of Rockland’s DNA.”
In conjunction with the acquisition, Wolverine closed on a financing comprised of a $216 term loan and $47 million revolving credit facility in the Term Loan B market. The high quality of the asset and stable cash flow profile allowed for successful execution of the financing at attractive terms at a time when the Loan B market was very selective and volatile.
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 Power Partners II and is located in Houston, Texas. For further information visit www.rocklandcapital.com.