Private-equity firm Energy Investors Funds announced Friday that two of its funds have indirectly acquired the remaining 50 percent ownership stake in the Newark Energy Center. The funds now own 100 percent of the center through their EIF-NEC LLC entity.
Hess Corporation was the previous owner of the stake.
“We’re excited to consolidate our ownership of the Newark Energy Center and are pleased to work with three longtime relationship banks on the financing of such a critical new generation resource,” Keith Derman, a partner at EIF, said in a news release.
Although terms were not disclosed in the release, EIF did say it used a $590 million loan from Credit Agricole Corporate and Investment Bank, GE unit GE Energy Financial Services and Mitsubishi UFJ Financial Group to support the acquisition, construction and operation of the power plant.
The Newark Energy Center has been under construction for nearly two years and is expected to begin commercial operations in May 2015, the release said. It will operate as one of the cleanest gas-fired power plants in the U.S. and produce enough electricity to power approximately 700,000 homes.
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