NEW YORK, New York, February 2, 2006 – Sithe Global Power LLC announced today that its 100% owned subsidiary, the Goreway Station Partnership, has closed financing on an approximately CAD 942MM construction facility for the 880 MW Goreway Station. The financing will be co-led by TD Securities and RBC Capital Markets. The equity for the project will be funded by Sithe Global’s investors, The Blackstone Group and Reservoir Capital Group, and by Sithe Global management.
The Goreway Station is a natural gas-fired combined cycle generating plant being developed by Sithe Global in Brampton, Ontario, within the greater Toronto area. Critical equipment procurement for the facility had already commenced in late 2005, and Sithe Global plans to commence simple cycle operations by June of 2007, with full combined cycle plant operation by July of 2008.
Power generated by Goreway Station will help address the growing electric power demand of the Ontario electricity market. The Ontario Power Authority (OPA) has entered into a 20 year clean energy supply agreement with respect to the full output of the Goreway Station, as part of the OPA’s initiatives to address the critical need for additional power in the Greater Toronto Area. A turn-key engineering procurement and construction agreement with SNCLavalin Power Ontario Inc. has been executed for the facility, which will utilize General Electric’s 7FB gas turbines.
Bruce Wrobel, Sithe Global’s Chairman and CEO, said, “Sithe Global is excited about this opportunity to participate in Ontario’s electricity market, and especially proud of the impact that this project will have in delivering timely, reliable and environmentally sound power to the province.”
David Foley, a Senior Managing Director of The Blackstone Group with primary responsibility for Blackstone's investments in the energy sector, said “The financial close of Sithe Global's Goreway Station project in Toronto marks a significant first step in Sithe Global's build-out of its 5,000 MW portfolio of power development projects. Blackstone expects to continue to invest substantial equity in support of Sithe Global's growth plan as additional power projects reach financial close.“
Sithe Global Power LLC is owned approximately 80% by Blackstone SGP Capital Partners (Cayman) IV L.P., an affiliate of The Blackstone Group and management, led by CEO Bruce Wrobel, with the remaining approximately 20% stake held by the Reservoir Capital Group. Blackstone purchased an 80% ownership interest in Sithe Global last year with the objective of facilitating Sithe Global Power's plans to develop, finance, construct and operate electric power generation facilities in the U.S. and certain international markets.
Sithe Global has a portfolio of power plant projects in various stages of development, including the 1500 MW Desert Rock facility, a coal-fired project in New Mexico, the 750 MW Toquop facility, a coal-fired project in Nevada, the 300 MW River Hill facility, a waste coalfired project in Pennsylvania, and 1,750 MW of projects in Italy, Uganda, Yemen and other countries, a total of approximately 5,000 MW generating capacity. Sithe Global also continues to pursue other opportunities within Ontario.
About Sithe Global Power
Sithe Global Power is a privately held international independent power development company which focuses on certain target markets in North America, Europe, Mexico, Africa and the Middle East. Sithe Global Power is led by a seasoned management and technical team with extensive independent power project development experience, and a proven record of identifying project development and acquisition opportunities which create substantial value for its investors. The Sithe Global management team has successfully developed over 50 power plant projects in nine countries with a capital investment in excess of $5 billion.
The Blackstone Group, a global investment and advisory firm with offices in New York, London, Paris, Hamburg and Mumbai, was founded in 1985. Blackstone is an experienced and active investor in the energy sector, including investments in Premcor, Inc., one of the largest independent refiners of petroleum products in the U.S. prior to its acquisition by Valero (NYSE:VLO) earlier this year; Texas Genco, a Houston-based wholesale electric power generating company; Foundation Coal (NYSE:FCL), a U.S. coal mining company; and Kosmos Energy, an oil exploration company. The firm has raised more than $50 billion for alternative asset investing since its formation. Over $25 billion of that has been for private equity investing, including Blackstone Capital Partners IV, an institutional private equity fund of $6.45 billion. http://www.blackstone.com
Reservoir Capital Group is a privately held investment firm with an opportunistic 'hybrid' investment approach. Reservoir invests directly in public securities and private investments, as well as in partnership with investment teams through the creation of hedge funds and private equity firms in which Reservoir is an owner. Reservoir's opportunistic investment funds currently have over $2.5 billion under management.
About SNC-Lavalin Ontario Power Inc.:
A wholly owned subsidiary of SNC-Lavalin Inc.. SNC-Lavalin (TSX: SNC) is one of the leading groups of engineering and construction companies in the world, a global leader in the ownership of infrastructure, and in the provision of operations and maintenance services. The SNC-Lavalin companies have offices across Canada and in 30 other countries around the world and are currently working in some 100 countries. http://www.snclavalin.com