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Siemens Financial Services, Inc. Provides $42.5 Million Holdco Loan for Hobbs Power Funding, LLC

Posted on: Tuesday, 10 February 2009, 09:00 CST

Financing Supports Preeminent Energy-Focused Private Equity Firm's Activities

ISELIN, N.J., Feb. 10 /PRNewswire-FirstCall/ -- Siemens Financial Services, Inc. (SFS Inc.) today announced it has funded and underwritten a $42.5 million senior term loan for Hobbs Power Funding, LLC (Hobbs). Hobbs is the holding company that indirectly owns a power plant in New Mexico sponsored by ArcLight Capital Partners, LLC (ArcLight), a leading energy investment firm.

(Logo: http://www.newscom.com/cgi-bin/prnh/20070904/SIEMENSLOGO)

"SFS Inc. is pleased to be the sole capital provider in this holdco financing structure. We are proud to continue offering financing in the current unstable market and support our customers when they need us," said Roland Chalons-Browne, President and CEO of SFS Inc.

Located in Hobbs, NM, the Hobbs generating station is a 604 MW gas-fired combined cycle power plant. The Hobbs project is indirectly owned by ArcLight Energy Partners Fund III, L.P., one of four funds managed by ArcLight.

"Holding company debt is a type of financing that is not widely available in the market due to its complexity and structural subordination to the senior project debt. We are happy to have this unique capability to ideally serve our customers," said SFS Inc. Senior VP and General Manager, Kirk Edelman. "Our broad suite of integrated financial solutions offers a source for flexible capital alternatives."

This is the second significant financing SFS Inc. has worked on with ArcLight. SFS Inc. is a $25 million participant in a senior secured loan facility for ArcLight affiliate Mackinaw Power Holdings, LLC, owner of a portfolio of 4 power generation plants.

About Siemens Financial Services (SFS)

Siemens Financial Services (SFS) is an international provider of financial solutions in the business-to-business area. With about 1,900 employees and an international network of financial companies coordinated by Siemens Financial Services GmbH, Munich, we support Siemens as well as non-affiliated companies, focusing on the three sectors of energy, industry and healthcare. We finance infrastructure, equipment and working capital and act as a competent manager of financial risks within Siemens. By leveraging our financing expertise and our industrial know-how we create value for our customers and help them strengthen their competitiveness. For more information see: www.siemens.com/finance.

Siemens Financial Services, Inc. (SFS Inc.) is a leading provider of business-to-business financial services in the United States. SFS is a committed business ally that combines deep industry expertise with integrated financing solutions to enhance the efficiency, productivity, and competitiveness of its customers. The company, based in Iselin, NJ, enables business expansion for thousands of customers in the healthcare, energy, and industrial sectors by providing customized solutions that range from equipment financing and working capital to project and export finance, and insurance solutions. Further information on Siemens Financial Services in the United States: www.usa.siemens.com/financial

About Siemens

Siemens AG (NYSE: SI) is a global powerhouse in electronics and electrical engineering, and operates in the industry, energy and healthcare sectors. For more than 160 years, Siemens has built a reputation for leading-edge innovation and the quality of its products, services and solutions. With 428,000 employees in 190 countries, Siemens reported worldwide sales of $116.6 billion in fiscal 2008. With its U.S. corporate headquarters in New York City, Siemens in the USA reported sales of $22.4 billion and employs approximately 69,000 people throughout all 50 states and Puerto Rico. For more information on Siemens in the United States, visit www.usa.siemens.com

SOURCE Siemens Financial Services, Inc.

Source: PR Newswire

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