Washington, D.C. (October 7, 2016) - Ullico Inc. today announced that it has closed a $50 million financing of the Eagle Creek Renewable Energy Hydroelectric power portfolio, expanding on a prior financing Ullico completed in 2015. Eagle Creek currently owns and operates 46 hydroelectric facilities in Illinois, Michigan, Minnesota, New York, New Jersey, New Hampshire, Wisconsin, Maine, Massachusetts and Vermont. The financing was made available through the Ullico Infrastructure Fund.
Eagle Creek's hydroelectric plants provide clean, renewable energy to residents and businesses in the Midwest, Northeast and New England regions. The majority of the portfolio's energy output is sold to credit-worthy entities through long-term power purchase agreements. Eagle Creek intends to use the proceeds of Ullico's mezzanine financing to continue to both acquire and construct hydroelectric assets throughout the United States.
"This is a creatively structured transaction that provides Ullico with an expanded foothold in the highly desirable hydroelectric generation sector while offering Eagle Creek a competitive capital solution to grow its portfolio of hydro projects," said Rohit Syal, head of acquisitions for Ullico's infrastructure investments.
"As zero-fuel cost base load power generation, hydro represents a core asset, and the Eagle Creek financing is a compelling investment for the Ullico infrastructure portfolio," said Jeff Murphy, portfolio manager for Ullico's infrastructure investments.
Ullico's financing ensures that Eagle Creek will continue to employ unionized labor in its major maintenance and construction activities. Eagle Creek recently completed two new plants in Vermont using unionized contractors.
"Through its investment in Eagle Creek, Ullico has broadened its infrastructure investment footprint to several states and regions that have long been important to the labor movement," said Edward M. Smith, president and CEO of Ullico Inc. "Ullico is proud to be teamed up with Eagle Creek to expand its portfolio."
Ullico Inc., through its infrastructure business, currently has investments in the utility and energy sectors and is exploring opportunities in all core sectors including transportation and social infrastructure.
The Ullico Infrastructure Fund and the units issued will not be registered under the Securities Act of 1933, as amended, the Investment Company Act of 1940, as amended, or under state securities laws. Investment in infrastructure is speculative, not suitable for all investors, and should be undertaken only by experienced and sophisticated investors who are willing to bear the high risks of such an investment, which include, but are not limited to, lack of liquidity, restrictions on transferring ownership to the Fund, absence of information regarding valuation and pricing, and high fees and expenses. Potential investors in the Fund should carefully read the Confidential Private Placement Memorandum for a description of the potential risks associated with investment in the Fund.
For more than 85 years, Ullico, the only labor-owned insurance and investment company, has been a proud partner of the labor movement, keeping union families safe and secure. From insurance products that protect union members, leaders and employers, to investments in building projects that have created thousands of union jobs, our customers continue to trust us with protecting their families, employees and investments. The Ullico Inc. family of companies includes The Union Labor Life Insurance Company; Ullico Casualty Group, Inc.; Ullico Investment Company, Inc.; and Ullico Investment Advisors, Inc. For additional information, visit www.ullico.com.
Eagle Creek Renewable Energy, LLC is an owner, operator and developer of hydroelectric generation facilities and provides safe, clean, economic renewable energy to electricity consumers in the U.S. Eagle Creek currently owns and operates in excess of 135 MW from 46 facilities. Eagle Creek was founded in 2010, is privately owned and is headquartered in Morristown, New Jersey. For additional information, visit www.eaglecreekre.com.