Perryville Gas Storage LLC Closes $125 Million Financing
May 18, 2010
HOUSTON, May 18, 2010 – Perryville(SM) Gas Storage LLC (“Perryville”), a wholly-owned subsidiary of Cardinal Gas Storage Partners LLC (“Cardinal”), announced today that it has closed the debt financing for the construction of the first 7.5 Bcf natural gas storage cavern at Perryville. WestLB AG and ING Capital LLC were the Joint Lead Arrangers and the Joint Bookrunners for the financing which consists of a $105,000,000 term loan and a $20,000,000 pad gas revolver. Perryville is developing a high-deliverability salt cavern natural gas storage facility located approximately 15 miles southwest of Delhi, Louisiana. Capacity for the first cavern has been fully contracted, and Perryville intends to develop at least two additional caverns at this premium location.
“We appreciate WestLB and ING’s contribution to the success of this transaction,” said Jeff Ballew, Cardinal CEO. “Combined with our Arcadia project, Cardinal now has the only two salt dome natural gas storage projects in North Louisiana that are financed and moving forward. In addition, this summer we expect to receive certification from the Federal Energy Regulatory Commission for the Cadeville depleted reservoir project currently under development near the Perryville/Delhi Hub.”
Cardinal, a joint venture between Martin Resource Management Corporation (“MRMC”) and Funds controlled by Energy Capital Partners, LLC (“ECP”), is focused on the development, construction, operation and management of natural gas storage facilities throughout North America. Cardinal also owns Arcadia Gas Storage LLC and Cadeville Gas Storage LLC and is in the process of developing additional natural gas storage facilities in North America. For more information, visit www.cardinalgs.com.
About Martin Resource Management Corp
MRMC is a leading independent provider of transportation, terminalling, marketing and logistics management services for the energy and petrochemical industries. The company, headquartered in Kilgore, Texas, markets hydrocarbon products and by-products through facilities located throughout the Gulf Coast region. In addition, MRMC owns a 100% general partner interest and a 40% limited partner interest in Martin Midstream Partners L.P. (“MMLP”). For more information, visit www.themartincompanies.com.
About Energy Capital Partners
ECP is a private equity firm with offices in Short Hills, New Jersey and San Diego, California. ECP is focused on investing in the power generation, electric transmission, fuel handling, midstream gas and renewable sectors of North America's energy infrastructure. The fund's management has substantial experience leading successful energy companies and energy infrastructure investments. For more information, visit www.ecpartners.com.
Cardinal Gas Storage Partners Daniel N. Hannon
Chief Financial Officer (713) 350-2510