Strategic Value Partners announced that funds managed by the firm have acquired a majority equity stake in New Frontera Holdings, owner of a 530-megawatt natural gas-fired combined-cycle power generation facility located in Mission, Texas. Financial terms of the transaction were not disclosed.
SVP initially invested in Frontera through the company’s first lien term loan prior to its 2021 restructuring. Following the restructuring process, SVP converted part of its debt position into equity and subsequently increased its ownership stake over time before acquiring majority control.
The acquisition is being executed through SVP’s strategic partnership with EverGen Power, a power generation acquisition and asset management platform established in 2024 to support SVP’s investments in power infrastructure across North America.
Frontera began commercial operations in 1999 and operates two natural gas-fueled combined-cycle GE 7FA turbines.
According to the companies, the facility serves as a key dispatchable power generation asset within the Lower Rio Grande Valley and supports growing electricity demand within the ERCOT market.
EverGen Power said it plans to focus on operational management and long-term value creation initiatives for the facility.
Strategic Value Partners manages approximately $22 billion in assets under management and focuses on special situations, opportunistic credit, private equity, and financing investments globally.
KEY QUOTES:
“By drawing on our deep restructuring expertise and knowledge of the power sector, SVP was well positioned to establish a controlling stake in Frontera.”
“Furthermore, through our partnership with EverGen, we will be able to drive value creation over the years to come.”
David Geenberg, Head Of North American Corporate Investments, Strategic Value Partners
“Frontera is a critical source of dispatchable power in the Lower Rio Grande Valley, one of the fastest-growing regions in ERCOT.”
“We are excited to bring our resources and expertise to drive best-in-class operations.”
Dave Freysinger, Managing Partner, EverGen Power
