The Carlyle Group has completed the acquisition of 75.05% of the outstanding interests of Southeast PowerGen, a portfolio of six natural gas-fired power plants in Georgia, USA, from ArcLight Capital Partners and the GIC, Singapore's sovereign wealth fund.
The acquisition increases the size of Carlyle’s power generation portfolio to more than 4,300 MW. GE Energy Financial Services will continue to own the remaining 24.95% equity interest in Southeast PowerGen.
Southeast PowerGen consists of two natural gas-fired combined-cycle power generation facilities and four natural gas-fired peaking facilities totaling 2,815 MW. Southeast PowerGen is a portfolio of contracted assets located in a region highlighted by some of the strongest electricity demand growth in the country and pending retirements of thousands of megawatts coal-fired power generation. The portfolio consists of highly responsive and flexible facilities that represent important resources for the regional mark and provides reliable power during periods of peak demand.
Concurrent with the closing of Carlyle’s acquisition, Southeast PowerGen has completed a US$550 million recapitalization of the company, proceeds from which will be used to repay existing debt, provide a distribution to equity owners and fund certain reserve accounts.
Equity capital for the transaction, terms of which were not disclosed, comes from Carlyle Power Opportunities Capital Partners L.P. and Carlyle Power Partners II L.P.