Catamount Energy Corporation Announces Initial Close And Funding
November 02 2005 - 3:14PM
Business Wire
Catamount Energy Corp. (Catamount) announced the initial close and
funding of the previously announced transaction with Diamond Castle
Holdings LLC and its affiliated funds (Diamond Castle). Central
Vermont Public Service (CVPS), previously the 100 percent owner of
Catamount, agreed to sell a controlling interest in Catamount to
Diamond Castle, a private equity investment firm. On Oct. 31,
Diamond Castle invested $16 million into Catamount. Diamond Castle
has committed to fund an additional $46.5 million into Catamount.
As part of the transaction, Mike Ranger, Ari Benacerraf, and Daniel
Clare of Diamond Castle have joined Catamount's board of directors.
CVPS has the option to remain a 49 percent owner in Catamount or,
under certain circumstances, to sell its entire ownership interest
in Catamount to Diamond Castle, in which case the sales proceeds
would be paid directly to CVPS. Unless CVPS exercises its option to
sell its remaining stake in Catamount, the funds invested by
Diamond Castle will be invested directly into Catamount to grow the
company's wind business. "We have been looking for the right
partner and we are very happy to have Diamond Castle as our new
investor alongside CVPS and the management team," said James Moore,
the CEO of Catamount. "With adequate capital in place we can focus
all our efforts on executing the business plan and growing the wind
energy project pipeline in the U.S. and the UK." "CVPS is reaping
the benefits of our commitment to Catamount," said Robert Young,
the CEO of CVPS. "We are working with our Board to decide whether
the best interests of our shareholders will be served by holding a
49 percent stake in the business or by completing the full sale of
the business to Diamond Castle by March of 2006." "At Diamond
Castle, we are pleased to have Catamount Energy as our first
investment," said Mike Ranger, a senior managing director. "Now we
look forward to supporting the management team as it continues to
build Catamount." Diamond Castle Holdings, LLC is a private equity
firm founded in September 2004. Lawrence Schloss, the former
chairman of Donaldson, Lufkin & Jenrette's and Credit Suisse
First Boston's successful private equity business, is the CEO of
Diamond Castle. Diamond Castle has 21 employees located in New York
and focuses on investments in the power, financial services, media
and telecom, and healthcare sectors. Catamount, the non-regulated
subsidiary of CVPS (NYSE: CV), has been in the business of
providing clean, cost-competitive electricity in the U.S. and
Europe for over 15 years. Catamount is a developer, owner, and
operator of wind energy projects. CVPS is a Vermont-based electric
utility serving 151,000 customers. More information regarding
Diamond Castle and Catamount is available on their web sites at
www.diamondcastleholdings.com and www.catenergy.com, respectively.
This press release includes statements that may constitute
"forward-looking" statements, usually containing the words
"believe," "estimate," "project," "expect," or similar expressions.
These statements are made pursuant to the safe harbor provision of
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. Factors that would cause or
contribute to such differences include, but are not limited to,
future trends in wind and other projects, acceptance of the
Companies' products and services in the marketplace, competitive
factors, dependence upon third-party vendors, and other risks. By
making these forward-looking statements, the Companies undertake no
obligation to update these statements for revision or changes after
the date of this release.
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