Energy Company Retains Majority Ownership and Continues to Manage Project
OMAHA, Neb. – Tenaska announced today that Prudential Capital Group (Prudential) has agreed to acquire a minority interest in the Tenaska Imperial Solar Energy Center South project, a 130-megawatt (MW) solar photovoltaic electric generating station near El Centro, Calif., currently owned by a Tenaska affiliate.
Prudential will become an indirect minority owner of Tenaska Imperial South. Tenaska affiliates will retain majority ownership and continue to manage the project.
"This joint venture provides our clients with the opportunity to share in the success of an innovative solar project with Tenaska, a partner that has 26 years of experience in managing these kinds of projects," said Ric Abel, managing director, Prudential. "We are delighted to partner with Tenaska's team."
Tenaska Imperial South is one of the largest commercially financed solar projects in the U.S. to date and was the first utility-scale solar project to begin construction in California's Imperial Valley. The ground-mounted photovoltaic solar project will produce enough electricity to power approximately 44,000 California homes when operating at peak times. The power generated from the facility will serve San Diego Gas & Electric (SDG&E) customers under a 25-year power purchase agreement.
"Tenaska has been fortunate to work with partners that align with our business philosophy and share in the success of each of our power projects," said Tenaska Vice Chairman and CEO Jerry Crouse. "Prudential has been a lender to Tenaska projects for many years. We are looking forward to continuing that relationship and now expanding it on the equity investment side."
Royal Bank of Canada is advising Tenaska in the transaction. The sale is subject to regulatory approvals expected to be final in December. Terms are confidential.
California's renewable energy mandates requiring utilities to secure 33 percent of their power from renewable energy resources and reduce greenhouse gas emissions to 1990 levels by 2020 created a strong market for large-scale projects like Tenaska Imperial South. Tenaska Solar Ventures (TSV), the Tenaska affiliate that developed the project, has also completed permitting for the Tenaska Imperial Solar Energy Center West near El Centro. Tenaska Imperial West will produce up to 150 MW of electricity for SDG&E under a 25-year power purchase agreement. TSV continues to develop two additional projects in the Imperial Valley.
About Prudential Capital Group
Prudential Capital Group manages a portfolio of $64 billion (as of 6/30/13) of privately placed debt — primarily senior, subordinated and mezzanine financing. Prudential Capital Group is one of the largest providers of private capital in the country, providing up to $10 billion annually to middle-market companies. Known for investing in relationships, providing strategic capital and delivering consistent results, Prudential Capital has earned a reputation for its large appetite for complex transactions across the risk spectrum. Prudential Capital's Regional Office Network has locations in Atlanta, Chicago, Dallas, Los Angeles, Minneapolis, New York, San Francisco, London, Paris and Frankfurt. For more information, please visit http://www.prudentialcapitalgroup.com.
Tenaska, based in Omaha, Neb., is one of the leading independent power producers in the U.S., with regional offices in Dallas, Denver, Pittsburgh and Calgary and Vancouver, Canada. Forbes magazine ranks Tenaska 35th among the largest privately held U.S. companies, based on 2011 revenues. Tenaska and its affiliates have developed and constructed approximately 9,000 megawatts (MW) of natural gas-fueled and renewable power generation, and manage operations for approximately 11,000 MW of power generation consisting of 14 power plants. Seven of those plants are owned by Tenaska in partnership with other companies and seven are private equity investments managed by affiliate Tenaska Capital Management, LLC. Tenaska Solar Ventures, LLC, Tenaska's solar energy development affiliate, was named one of the top five utility-scale solar developers by PV News in 2011. The company also markets natural gas, electric power, biofuels and related commodities, and natural gas fuels, and provides energy risk management services. Tenaska is involved in asset acquisition, fuel supply, natural gas exploration, production and transportation systems, and electric transmission development. For more information about Tenaska or Tenaska Solar Ventures, visit www.tenaska.com or www.tenaskasolarventures.com.