NEW YORK, May 9, 2007 - AIG Global Investment Group today announced that AIG Highstar Capital II, L.P. (Highstar) and certain of its affiliates have agreed to sell their 50% beneficial ownership interest in Northern Star Generation, LLC (Northern Star) to UBS Americas Inc. (UBS), a wholly-owned subsidiary of UBS AG, for an undisclosed amount. UBS is acquiring this interest through its Infrastructure Asset Management business unit.
Northern Star is a leading owner, operator, and acquirer of energy facilities in the U.S. Headquartered in Houston, Texas, the Company owns or has beneficial equity interests in 13 energy facilities having a combined electric generating capacity of approximately 1,600 net megawatts. Northern Star energy facilities are located in California, Colorado, Florida, Georgia, Nevada, and Pennsylvania.
Northern Star was formed in early 2004 by Highstar and Ontario Teachers' Pension Plan (OTPP) to own and operate a portfolio of power plants with long-term contracts. The remaining 50% is owned by OTPPB US Power LLC, a 100% owned subsidiary of OTPP.
Steve Jacobs, Global Head of Infrastructure Asset Management at UBS, commented that, "We are excited about acquiring this 50% interest in Northern Star as it represents a company with a strong management team focused on developing a platform of assets that comprise stable, long-term cash flows principally with investment-grade rated counterparties. We look forward to working with OTPP in this investment."
"The acquisition of the Northern Star Generation portfolio in 2004 was an important step in building the Highstar franchise. Accordingly, we want to thank our sponsor, AIG Global Investment Group, our joint venture partner, OTPP and the outstanding management team at NSG led by Jack Browder for helping the Highstar team execute on this extremely successful investment," said Michael J. Miller, a Highstar Partner.
The transaction is expected to close in the third quarter of 2007, subject to receipt of customary regulatory approvals.
Lehman Brothers acted as exclusive financial advisor to Highstar, while UBS Investment Bank served as UBS's advisor.
About AIG Highstar Capital
AIG Highstar Capital (Highstar) is a group of private equity professionals sponsored by AIG Global Investment Group that makes equity investments in infrastructure assets and businesses. Since 2000, the Highstar team has led or co-led infrastructure investments totaling in excess of US $10 billion in enterprise value, including investments in power generation, water and waste water, natural gas transmission and storage, waste management, waste-to- energy, transportation logistics and port concessions and operations. Currently, the Highstar team is managing a portfolio of assets valued in excess of US $3 billion.
About AIG Global Investment Group
AIGGIG is a worldwide leader in asset management, with extensive capabilities in equity, fixed income, multi-manager hedge funds, private equity, and real estate. AIGGIG manages more than US $687 billion in assets, and employs over 2,000 professionals in 44 offices around the world as of March 31, 2007. Total assets under management include approximately US $579 billion of AIG affiliated assets. AIGGIG comprises a group of international companies which provide investment advice and market asset management products and services to clients around the world. The member companies of AIGGIG are subsidiaries of American International Group, Inc. (NYSE:AIG).
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