PR Newswire: news distribution, targeting and monitoring
2014

Regency Affiliates, Inc. Acquires Equity Interest in Mobile Energy Services Company - Long Term Supplier of Energy to Kimberly-Clark Corporation's Mobile, Alabama Tissue Mill

Share with Twitter Share with LinkedIn
    JENSEN BEACH, Fla., May 10 /PRNewswire/ -- Regency Affiliates, Inc.
 (OTC Bulletin Board:   RAFI.OB) is pleased to announce that, on April 30, 2004,
 it acquired a 50% equity interest in MESC Capital, LLC, a special purpose
 investment vehicle which, also on April 30, 2004, acquired Mobile Energy
 Services Company, LLC.  Mobile Energy owns an on-site energy facility that,
 under a new 15-year contract, supplies steam and electricity to a Kimberly-
 Clark Corporation tissue mill in Mobile, Alabama.  DTE Mobile, LLC, Regency's
 equity partner in MESC Capital, is an unregulated subsidiary of a large energy
 company that has significant experience in owning, managing and operating
 electric generation and on-site energy facilities.  DTE Mobile, with its
 affiliate, will provide operations, management and maintenance services and
 asset management support for the Mobile Energy investment and energy facility.
     Regency's investment totaled approximately $7.3 million, $3 million of
 which represented purchase price for the MESC Capital interest and the balance
 of which was contributed to MESC Capital to fund a portion of the $33.6
 million purchase price for Mobile Energy.  The balance of the purchase price
 plus working capital reserves were funded by the issuance by MESC Capital of
 $28.5 million of non-recourse debt, a capital contribution by Regency's equity
 partner in MESC Capital, and a credit of $1 million on account of existing and
 continuing tax-exempt indebtedness of Mobile Energy.  Regency invested in MESC
 Capital through a newly-formed, wholly-owned subsidiary called Regency Power
 Corporation.  Neither Regency nor its equity partner is obligated to
 contribute or lend any additional capital to MESC Capital.
     The energy facility is located on approximately 11 acres of land within
 the Kimberly-Clark tissue mill in Mobile, Alabama.  The facility supplies up
 to 61 megawatts of co-generated steam and electricity for use in the mill's
 operations, with a power-house fueled by a combination of coal, biomass and
 natural gas.  Under the new 15-year agreement, Mobile Energy will be the
 exclusive steam supplier and a substantial electricity supplier to the
 Kimberly-Clark mill.
     Laurence S. Levy, Regency's Chairman, President and CEO said "We are
 thrilled with Regency's investment in the Mobile Energy facility and to be
 working with Kimberly-Clark on a long-term basis. We believe this transaction
 is indicative of our approach to investing Regency's capital in investments
 where we believe we can earn attractive risk-adjusted returns for our
 shareholders."
     Regency is a holding company with investments in a number of subsidiaries
 including Security Land and Development Company Limited Partnership. Security
 Land owns a two-story office building and connected six-story tower totaling
 approximately 717,000 square feet occupied by the Social Security
 Administration of the United States Government.
     Regency has filed a Form 8-K containing additional information with
 respect to its investment in MESC Capital.
 
     CAUTIONARY STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
 1995.  Statements in this press release may constitute "forward-looking
 statements" within the meaning of Section 27A of the Securities Act of 1933,
 as amended, and Section 21E of the Securities Exchange Act of 1934, as
 amended.  Any statements contained herein which are not statements of
 historical facts and that address activities, events or developments that
 Regency or its management expects, believes or anticipates will or may occur
 in the future shall be deemed to be forward-looking statements.  Forward-
 looking statements are inherently subject to risks and uncertainties, many of
 which cannot be predicted with accuracy and some of which might not be
 anticipated.  Future events, actual results of performance, financial or
 otherwise, could differ materially from those set forth in or contemplated by
 the forward-looking statements herein.  Readers are cautioned not to place
 undue reliance on these forward-looking statements, which speak only as of the
 date hereof.  Regency undertakes no obligation to release publicly any
 revisions to these forward-looking statements that may be made to reflect
 circumstances after the date hereof or to reflect the occurrence of
 unanticipated events.  The inclusion of any statement in this press release
 does not constitute an admission by Regency or any other person that the
 events or circumstances described in such statement are material.
 
 

SOURCE Regency Affiliates, Inc.

Featured Video

Journalists and Bloggers

Visit PR Newswire for Journalists for releases, photos, ProfNet experts, and customized feeds just for Media.

View and download archived video content distributed by MultiVu on The Digital Center.

Share with Twitter Share with LinkedIn
 

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

 
 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

 
 

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.

 

Online Member Center

Not a Member?
Click Here to Join
Login
Search News Releases
Advanced Search
Search
  1. PR Newswire Services
  2. Knowledge Center
  3. Browse News Releases
  4. Contact PR Newswire
  5. Send a News Release