Ultra Capital and Panamint Capital Complete $165.9 Million Refinancing for Cottage Grove Cogeneration

COTTAGE GROVE, Minn., June 2, 2025 /PRNewswire/ -- On May 2, 2025, LSP-Cottage Grove, L.P., successfully closed a $165.9 million refinancing for the Cottage Grove Cogeneration facility, a 265 MW combined-cycle gas turbine (CCGT) plant located in MISO Zone 1. The recapitalization was executed via an issuance of $125.9 million in senior secured notes and a $40 million letter of credit facility.

The 18-year financing is supported by a recently executed 15-year tolling agreement with a leading regional cooperative utility. Cottage Grove is a critical source of local capacity in MISO with an impeccable safety record, having recently achieved 10,000 days without a lost time accident. The dual-fuel facility can provide continuous power to the MISO grid during system emergencies while simultaneously supporting the operations of a major North American chemicals and manufacturing company through the provision of industrial energy products. Furthering the plant's reliability benefits, Cottage Grove's affiliate, Cottage Grove Storage, is progressing the development of an advanced-stage 80 MW / 320 MWh energy storage project at the facility's site.

Global Infrastructure Partners (GIP), a part of BlackRock and PGIM Private Capital were the purchasers of the notes and Mizuho acted as LC issuing bank. White & Case LLP served as counsel to the issuer and Morgan Lewis & Bockius LLP served as counsel to the purchasers and LC issuer. PEI Global Partners served as exclusive financial advisor to the issuer on the transaction LSP-Cottage Grove, L.P., which is wholly owned by funds managed by Ultra Capital, LLC and Littletown Holdings LLC, an entity owned by the management team of Panamint Capital LLC, and receives Management Services from Panamint Capital.

"We are pleased to have closed this financing with GIP, PGIM Private Capital and Mizuho, underscoring Cottage Grove's essential role in the region's energy landscape. This recapitalization, leveraging a long-term contract with a high-quality counterparty, validates Panamint's investment thesis from 2021. We remain committed to strategic investments that support the plant's reliability and ongoing battery storage expansion."
Kristian Hanelt, Partner at Ultra Capital

"The transaction is a great result for our investors in this deal and for our team, who demonstrated Panamint's commitment to delivering high quality outcomes by executing this complex financing," said Apolka Totth, Chief Executive Officer of Panamint Capital. "Over four years we have taken Cottage Grove from an underinvested asset to an investment grade-rated facility with best-in-class operations. We are excited to deepen our relationship with GIP, PGIM Private Capital and Mizuho and look forward to managing Cottage Grove through its next phase of success and facility expansion."
Panamint Capital

"Cottage Grove's long-dated, contracted revenue aligns closely with our strategic focus on stable, high-quality infrastructure debt investments on behalf of clients. We are pleased to participate in the financing for an asset critical to regional grid reliability."
Stuart Murray, Fund Partner at GIP

"Our investment in Cottage Grove reflects our commitment to financing infrastructure assets backed by stable, long-term contracts with creditworthy counterparties."
Ingrida Soldatova, Senior Principal at PGIM Private Capital

"Mizuho is proud to have supported this institutional private placement and to have provided a Letter of Credit Facility for Cottage Grove."
Eric Ross, Director at Mizuho

"We're delighted to have advised Ultra Capital and Panamint on this important recapitalization. This structured institutional bond issuance is underpinned by the asset's new long-term tolling contract and unlocked significant upfront liquidity for the continued operation and reliability of this critical power infrastructure asset."
John Bills, Partner at PEI Global Partners

About Ultra Capital
Founded in 2015, Ultra Capital is a fund management firm, investing in energy transition and sustainable infrastructure, focusing on the accelerating trend toward decarbonization. Ultra invests in companies with demonstrated management teams, providing both growth equity and project capital. With decades of experience in asset management, renewables, finance and engineering, the Ultra Capital team shares a single goal: driving a more sustainable foundation for our future. For more information, visit www.ultracapital.com.

About Panamint Capital
Panamint is a KKR-backed energy investment company headquartered in Incline Village, Nevada. The firm develops, acquires, and manages power generation, mining and electric transmission assets and currently manages over 3.0 GW of operating and development-stage conventional and renewable energy assets in North America. For more information, visit www.panamintcapital.com.

About Global Infrastructure Partners (GIP), a Part of BlackRock
Global Infrastructure Partners (GIP) is a leading infrastructure investor that specializes in investing in, owning and operating some of the largest and most complex assets across the energy, transport, digital infrastructure and water and waste management sectors. On October 1, 2024, BlackRock closed its acquisition of GIP. For more information, visit www.global-infra.com.

About PGIM Private Capital
For nearly 100 years, PGIM Private Capital has been partnering with a wide range of corporations, sponsors, and institutions to provide valuable insights and customized capital solutions that enable them to achieve their growth and funding goals. In an industry where capital can seem like a commodity and relationships are often fleeting and transactional, we strive to build enduring local partnerships based on a steady and patient commitment to our partners' long-term capital needs. With regional teams in 15 offices around the world, we manage a portfolio of $109.7 billion for our partners (as of 3.31.25).

About Mizuho
Mizuho Financial Group, Inc. is one of the largest financial institutions in the world as measured by total assets of ~$2 trillion, according to S&P Global 2024. Mizuho's 65,000 employees worldwide offer comprehensive financial services to clients in 36 countries and 850 offices throughout the Americas, EMEA, and Asia.

Mizuho Americas is a leading Corporate and Investment Bank (CIB) that provides a full spectrum of client-driven solutions across strategic advisory, capital markets, corporate banking, and fixed income and equities sales & trading to corporate, government, and institutional clients in the US, Canada, and Latin America. Through its acquisition of Greenhill, Mizuho enhanced its M&A, restructuring, and private capital advisory capabilities across the Americas, Europe, and Asia. Mizuho Americas employs approximately 4,000 professionals. For more information visit www.mizuhoamericas.com.

About PEI Global Partners
PEI Global Partners Holdings LLC ("PEI") is an independent, closely held investment bank with offices in New York City, Tampa and Hong Kong, specializing in the power, energy, and infrastructure sectors. PEI advises financial sponsors, developers and corporate clients on mergers and acquisitions, divestitures, financings, private placements, and other strategic transactions. Since its inception in 2022, PEI has completed over 30 transactions, raising well over $10 billion for owners and developers of renewable and thermal power. PEI conducts securities transactions through its wholly owned broker-dealer subsidiary PEI Global Partners LLC, which is regulated by the Financial Industry Regulatory Authority ("FINRA"), the Securities and Exchange Commission ("SEC"), the New York State Department of Financial Services and the Florida Office of Financial Regulation. For more information on PEI, please visit www.peigp.com.

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SOURCE Panamint Capital LLC