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Allco Tehachapi Wind (3,100 MW of Wind Development Assets)

Background

Merits:

• Large development pipeline, supported by landmark PPA with Southern California Edison (1,550MW for over 20 years)

• Favorable transmission queue positions for the additional expansion capacity

• Advanced procurement of equipment, with secured delivery from a major turbine maker

• Highly experienced management team

• Positive outlook for US & Californian wind energy markets

• Unique opportunity to gain immediate scale in the US wind energy market (largest single location development in the world today)

Challenges:

• Tight timeline to close due to financial constraints of the parent company

Marathon Capital Process

• We represented Allco Finance Group as its Exclusive Financial Advisor/Investment Banker.

• In conjunction with the management team, we created a sale teaser, offering book and valuation model of the company.

• We managed a sale auction process, involving two bidding phases.

• We assisted management in presenting the company's competitive advantages, values and management skills to a select group of potential buyers.

• We received multiple bona fide offers from top-tier strategic and financial buyers.

• We advised Allco's board in evaluating the offers and selecting the exclusive buyer.

• We managed the due-diligence process utilizing a virtual data-room.

Outcome

• Marathon Capital was engaged in March 2008. Wind transaction closed with Terra-Gen Power, LLC, an affiliate of ArcLight Capital Partners, LLC, at a valuation of $325MM in July 2008.