Martin Energy Group announced a strategic capital partnership with private equity firm Orion Energy Partners, L.P. to accelerate the growth of its distributed generation platform focused on owning combined heat and power assets that provide more efficient and reliable onsite power and thermal energy to commercial and industrial customers across North America and the Caribbean. The senior secured credit facility from Orion Energy will provide Martin Energy with capital to fund Martin Energy’s “CHP as a Service” platform. The first project, which consists of the construction and operation of a CHP facility in Puerto Rico, is backed by a long-term offtake agreement with Coca Cola Puerto Rico Bottlers.
Headquartered in Tipton, Missouri, Martin Energy is a developer, owner, operator and supplier of distributed generation assets and products in North America that has been building and operating distributed generation facilities since 1976.
Orion Energy provides creative capital solutions to middle market energy infrastructure businesses across North America and select international markets.
“Our partnership with Orion Energy will provide Martin Energy with a strategic and financial partner who can support the ongoing expansion of our business in core target markets,” said Marcus Martin, Martin Energy’s CEO. “This capital will allow Martin Energy to support additional enterprises with customers who are seeking to optimize their energy needs with a more reliable, high quality, efficient and environmentally friendly source for thermal energy and power.”
“We are very pleased to start working with Martin Energy towards bringing alternatives for effective power solutions into our island,” explained Julio Bravo, Vice President of Coca Cola Puerto Rico Bottlers. “Martin Energy’s new CHP facility will allow us to improve our day-to-day operations, business continuity and efficiency.”
“Martin Energy’s first CHP as a Service project in Puerto Rico will both improve energy resiliency and eliminate the impacts of any grid-related issues, resulting in daily operational reliability to Coca Cola Puerto Rico Bottlers,” said Gerrit Nicholas, Managing Partner of Orion Energy. “We look forward to supporting Martin Energy as it capitalizes on the fast-growing needs for more efficient distributed generation infrastructure in North America.”
Capstone Headwaters LLC acted as exclusive placement agent to Martin Energy in connection with the term loan from Orion Energy and Greensfelder, Hemker & Gale, P.C and Reichard & Escalera LLC acted as legal counsel to Martin Energy. Latham & Watkins LLP and McConnell & Valdés acted as legal counsel to Orion Energy.