Washington, D.C. (Nov 7, 2014) — Ullico Inc. today announced the closing of an approximately $75 million investment in the Neptune Regional Transmission System (NRTS). The NRTS is a 65-mile, 660-MW high-voltage direct-current submarine transmission cable connecting New Jersey and Long Island, New York.
"This recent transaction is another example of how labor capital plays an important role in investing in energy infrastructure assets throughout this great country," said Edward M. Smith, president and CEO of Ullico Inc. "At the same time, infrastructure investments are an example of one strategy that we utilize to achieve our goal of generating the returns needed to keep our union members' pensions safe and sound."
The investment includes a Firm Transmission Capacity Purchase Agreement with Long Island Power Authority (LIPA) extending through 2027, with a 20-year extension option.
"It's a great asset because of its strategic location, connecting the two important power markets of Long Island and the Mid-Atlantic Region," said Rohit Syal, head of acquisitions for Ullico's infrastructure investments.
Originally built by union labor, the cable has been operational since 2007. It remains an essential component of the power transmission infrastructure for the 1.1 million residents of Long Island, supplying 20 percent of their power on average.
"This investment supports our core strategy of owning long-term assets that provide annual income distributions to our investors. Neptune offers reliable, long-term income from a proven operating asset," said Jeff Murphy, portfolio manager for Ullico's infrastructure business.
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.
Ullico was advised by Chabourne and Parke LLP and Loop Capital Markets on the transaction. Powerbridge, LLC and Skadden, Arps, Slate, Meagher & Flom LLP advised the sellers.
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.