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Middlesex Gas & Generating Company (21 MW Landfill Gas)

Background

Merits:

• Highly viable business plan in lucrative PJM power market

• Advantageous energy credits and PPA's available

Challenges:

• Construction delays and cost overruns led to default

• Developer had limited financial capital

Marathon Process

• We represented National Energy Resource Corp. ("NERC"), the equity owners of Middlesex Gas and Generating Company, throughout turnaround, refinancing and sale as Exclusive Financial Advisor/Investment Banker.

• We negotiated with senior construction debt to cure defaults caused by construction delays and cost overruns.

• We recapitalized the project with new senior debt from Hudson United and subordinated previous construction debt.

• As project neared commercial operation date, Marathon presented the project's competitive advantages and value proposition to a select group of potential buyers.

• We advised NERC in evaluating the offers and selecting the exclusive buyer.

Outcome

• Closed gas transaction with GE at a valuation of $55 MM through the sale of NERC's interests

• Gas financing project was awarded EPA Project of the Year Award