Daily News: March 28, 2012

AIG Commercial AF Provides $70MM Loan to Dakota Coal

AIG Commercial Asset Finance (AIGCAF) said it has provided a $70 million loan to Dakota Coal, a wholly owned subsidiary of Basin Electric Power Cooperative headquartered in Bismarck, ND. Proceeds from the loan were used to refurbish a Bucyrus Erie walking dragline with a 124 cubic yard bucket.

The dragline is used at The Freedom Mine near Beulah, ND. Coal from the mine is used as feedstock to power two of Basin Electric’s generation facilities as well as the Dakota Gasification Company’s Synfuels Plant located adjacent to the mine.

Steve Johnson, manager of Treasury Services for Basin Electric, noted that AIGCAF’s expertise in financing long-lived assets played a key role in Dakota Coal choosing AIGCAF as a financing partner: “The entire process from the initial discussions through the negotiation of terms and conditions to closing was handled very professionally. This is a business relationship the parties all plan to cultivate and build upon for years to come.”

Basin Electric is one of the largest electric generation and transmission cooperatives in the U.S. with over 5,000 MW of generation capacity serving portions of nine states.
The company maintains more than 2,250 mile of high voltage transmission lines.

Kirk Phillips, senior vice president of Direct Originations at AIGCAF, noted that the company’s extensive experience in structuring practical equipment finance transactions contributed to the quick closing of the transaction, “Leveraging AIGCAF’s expertise in equipment finance along with our focus on developing direct and lasting relationships with our customers allowed us to close this transaction in an efficient and expedient manner.”