Business & Finance
Business and Finance
Business and Finance
Fri, July 1, 2011
Thu, June 30, 2011 Corridor Energy Completes Power Transmission Asset Purchase
LEAWOOD, Kan.--([ BUSINESS WIRE ])--Corridor Energy LLC (Corridor) today announced it has identified, financed and closed its first energy infrastructure real asset transaction. Corridor facilitated a $16.1 million acquisition by Tortoise Capital Resources Corp. (NYSE: TTO) in a 40% undivided interest in the Eastern Interconnect Project (EIP), a 216-mile power transmission line operated by Public Service Company of New Mexico, a subsidiary of PNM Resources, Inc. (NYSE: PNM).
"According to the Brattle Group, investment in new transmission moving forward will be approximately $10 billion annually. We are investing in the infrastructure corridors that deliver the vital energy resources our economy needs to grow"
This transaction advances TTOa™s and Corridora™s goal of partnering with high-quality operators by investing in real assets in energy infrastructure. Founded in 1917, Public Service Company of New Mexico is New Mexicoa™s largest electric utility provider, serving more than 500,000 customers statewide. The EIP is one of only seven facilities providing east to west transfer in the U.S., making it a critical component of the energy system.
aOur strategy is to use our financial and operational expertise to build relationships with energy company management teams,a said Richard Green, Managing Director of Corridor, aand we are delighted to become Public Service Company of New Mexicoa™s partner in this asset. This system fits nicely with our investment criteria, and is an important step in executing TTOa™s strategy for transforming the company from a business development company (BDC) into a Real Estate Investment Trust (REIT) in the future. We are actively pursuing additional energy transmission and distribution investments.a
Corridora™s investment team has a combined 70 years of energy industry experience and a track record in operations as well as financial transactions. Corridor targets infrastructure assets that serve as conduits for critical resources, and it is focused on helping TTO identify energy assets that qualify for inclusion in a REIT. Qualifying assets include pipelines or storage for oil and gas, and electric transmission and distribution lines. Typically these are long-lived assets with steady, regulated cash flows.
aAccording to the Brattle Group, investment in new transmission moving forward will be approximately $10 billion annually. We are investing in the infrastructure corridors that deliver the vital energy resources our economy needs to grow,a Green concluded.
An asset fact sheet with further details on the transmission line investment is available at [ www.corridorenergy.com ].
AboutCorridor Energy LLC
Corridor is a consultant to Tortoise Capital Advisors and is helping TTO identify, analyze and finance potential investments that are consistent with a real asset investment strategy. Corridor is an asset management company focused on real infrastructure assets such as electric power transmission and distribution, and natural gas and liquid transportation and storage. Corridor is focused on partnering with energy company management to provide growth capital. The Corridor leadership team has a combined 70 years of experience in debt and equity financing for energy infrastructure, energy and utility asset acquisition, development, ownership and operations. Corridor Energy was formed by Tortoise Capital Advisors, L.L.C., Tortoise's majority owner, Montage Investments, and Corridor Energy management in January 2011. For more information, visit the companya™s website at [ www.corridorenergy.com ].
AboutTortoise Capital Resources Corporation (NYSE:TTO)
Tortoise Capital Resources Corp. (NYSE: TTO) invests primarily in the U.S. energy infrastructure sector. As previously reported, TTO intends to withdraw its election to be treated as a business development company. If TTO acquires additional suitable REIT qualifying investments during 2011, TTO intends to make an election to be treated as a REIT for tax year 2012. For more information, visit the companya™s website at [ www.tortoiseadvisors.com ].
About PNM Resources (NYSE: PNM)
PNM Resources(NYSE: PNM) is an energy holding company based inAlbuquerque, N.M., with 2010 consolidated operating revenues of$1.7 billion. Through its utility and energy subsidiaries,PNM Resourceshas approximately 2,630 megawatts of generation resources and serves electricity to more than 875,300 homes and businesses inNew MexicoandTexas. The company also has a 50-percent ownership ofOptim Energy, which owns nearly 1,200 megawatts of generation resources inTexas. For more information, visit the company's website at [ www.PNMResources.com ].
Safe Harbor Statement
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Forward-Looking Statement
This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although Corridor Energybelieves that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the company's reports that are filed with theSecurities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, Corridor Energydoes not assume a duty to update this forward-looking statement.
