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Press Release

JERA to Participate in a Natural Gas-fired Thermal Power Cogeneration Project in New Jersey

2017/10/12

JERA Co., Inc. (“JERA”) today announced that it has agreed to acquire a 50% equity interest in Linden Cogen Holdings LLC, the owner of a 972MW natural gas-fired thermal power cogeneration complex (“Linden”) in the State of New Jersey. JERA will acquire the interest from funds managed by Oaktree Capital Management, L.P. and Ares Management, L.P. and their respective co-investors through its wholly-owned subsidiary JERA Power U.S.A. Inc.

Linden sells power produced to the wholesale electricity market in the State of New York (“NYISO”) as well as the PJM Interconnection, the wholesale electric market serving a number of states, including New Jersey. In addition, Linden sells power and steam produced during the process of power generation for industrial use.

Linden plays a significant role in the supply of power to New York City, producing approximately 10% of the metropolis’ power demand. Since the start of operation in 1992, it has consistently maintained strong operating performance and contributed to a stable supply of energy to New York City. This strong performance is a result of the plant’s unique advantages such as its high thermal efficiency. Linden’s owners are currently considering the construction of an additional unit for the power plant, which will present a further investment opportunity for JERA and its partners.

JERA’s vision is to utilize its globally accumulated expertise and actively participate in energy projects situated in its portfolio regions to ultimately become a key player in energy markets in those regions. Linden is in line with JERA’s vision. JERA will help drive the project forward by transferring skilled personnel who will bring operational know-how accumulated through JERA’s extensive IPP business both overseas and in Japan. JERA will also seek to benefit from gaining knowledge of NYISO, one of the most advanced US power markets, through its participation in Linden.

Going forward, JERA will continue to enhance its corporate value by expanding its overseas power generation business, in the Americas and elsewhere, taking into account global market trends, profitability and associated risks, and applying the know-how gained overseas to its domestic power generation business.

“We are delighted to partner with outstanding investment firms, Oaktree and Ares, on this excellent power plant that delivers reliable power to meet New York City demand and provides significant benefits to the region. JERA believes our expertise including parent companies gained from operating approximately 70GW worldwide will add value to Linden.” said Toshiro Kudama, Senior Executive Vice President at JERA.

“We are pleased to have reached an agreement with JERA to bring them into our Linden partnership. We believe that JERA’s scale and expertise will help us build additional value at Linden as we continue to evaluate strategic alternatives for our remaining interests,” said Bret Budenbender, Co-Head of Energy at Oaktree Infrastructure.

“We are excited to partner with JERA on Linden and believe JERA’s expertise in this industry will be invaluable to Linden’s operations and future initiatives,” said Warren MacGillivray, a Partner in the Ares EIF Group.

About JERA

JERA is an energy company with global reach that has strength in the entire energy supply chain, from participation in LNG and other fuel resource projects and fuel procurement, through fuel transportation to power generation. Established in 2015, JERA is an equal joint venture of two major Japanese electric companies, TEPCO Fuel & Power Incorporated and Chubu Electric Power Company. JERA’s mission is to supply power and energy on a globally competitive basis, by effectively developing and managing its portfolio of energy chain assets and continuously optimizing its business.

About Oaktree

Oaktree is a leader among global investment managers specializing in alternative investments, with $99 billion in assets under management as of June 30, 2017. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 18 cities worldwide. For additional information, please visit Oaktree’s website at www.oaktreecapital.com.

About Ares

Ares Management, L.P. (NYSE:ARES) is a publicly traded, leading global alternative asset manager with approximately $104 billion of assets under management as of June 30, 2017 and more than 15 offices in the United States, Europe, Asia and Australia. Since its inception in 1997, Ares has adhered to a disciplined investment philosophy that focuses on delivering strong risk-adjusted investment returns throughout market cycles. Ares believes each of its three distinct but complementary investment groups in Credit, Private Equity and Real Estate is a market leader based on assets under management and investment performance. Ares was built upon the fundamental principle that each group benefits from being part of the greater whole. For more information, visit www.aresmgmt.com.

Appendix: Outline of the Linden Natural Gas-fired Thermal Power Cogeneration Project in New Jersey (PDF:561KB)