Griffin Energy Group - Griffin Power
In January 2010, KordaMentha partners were appointed Voluntary Administrators over entities in the privately owned Griffin Energy Group. The Administration included appointment over the 100% equity interest in Griffin Power and Griffin Power 2 – the owners of the Bluewaters I and the Bluewaters II power stations ('Bluewaters').
Bluewaters has a combined total design capacity of 458MW and are base load coal-fired power stations situated in Collie, Western Australia (~200km south-east of Perth). The Bluewaters stations were commissioned in 2009 and operate within the South West Integrated System (SWIS) with 93% of off take sold under 3 complex PPAs (and the remainder sold on market).
Griffin Power has early-stage plans for the addition of a further 400MW of energy from the Bluewaters III and Bluewaters IV expansions.
Bluewaters was funded by ~$1.1 billion of senior and mezzanine project debt provided by a syndicate of 15 local and foreign banks. We have overseen the financial and operational performance of Bluewaters whilst working closely with Management, the technical and market advisers, the syndicate and the appointed investment banks to prepare the companies for sale.
The engagement has involved:
- Project managing the sale of a significant Power asset in conjunction with Griffin Coal (its equity holder and coal supplier)
- Financial and operational performance review
- Oversight of the preparation of sale documentation:
- Information memorandum
- Consultant reports (engineering, WA energy market, coal supply)
- Vendor financial and taxation due diligence
- Development of a 30 year financial model
- Management presentations
- Management of multiple stakeholders including bondholders, DIP financiers, syndicate members, potential buyers etc.
Our approach has been to work closely with Management, the syndicate and a range of technical advisers and investment banks to develop a divestment strategy for both Griffin Power and Griffin Coal.
The sale process is currently ongoing.