Houlihan Lokey Advises Atlas Holdings

Houlihan Lokey is pleased to announce the sale of 100% interest in Mesquite Generation Holdings LLC (Mesquite), a 1.1 GW portfolio of thermal power assets in Texas, from Atlas Holdings LLC (Atlas) to Hull Street Energy LLC (Hull Street) and Panamint Capital LLC (Panamint).

Mesquite comprises Bastrop Energy Center ("Bastrop"), a 598 MW CCGT facility, Paris Energy Center (“Paris,” collectively with Bastrop, the “Gas Assets”), a 257 MW dual fuel CCGT facility, and Twin Oaks Power Station (“Twin Oaks,” collectively with the “Gas Assets,” the “Projects”), a 310 MW coal-fired facility. The Gas Assets were acquired by Hull Street in a transaction that closed on June 1, 2023. Twin Oaks was acquired by Panamint in a transaction that closed on August 21, 2023.

Bastrop and Paris are located in Cedar Creek and Paris, Texas, within close proximity to the Austin and Dallas metro areas, respectively. Bastrop is a baseload facility, while Paris provides reliable on-peak services. Twin Oaks is located in Bremond, Texas, and is the lowest marginal cost coal plant in ERCOT with an adjacent captive mine on site. The Projects all sell power into ERCOT on a merchant basis. Paris and Twin Oaks sell into ERCOT’s North zone, and Bastrop sells into ERCOT’s South zone (although highly correlated to ERCOT North).

The Projects were previously owned by Atlas, a private equity firm headquartered in Greenwich, Connecticut, that owns and operates 26 companies across various industries, including industrials and power generation. The Projects were managed by Kindle Asset Management and expected to continue to provide short-term asset management services post-closing under a transition services agreement.

Hull Street is a private equity firm headquartered in Bethesda, Maryland, that specializes in investing in the power sector and currently owns approximately 2.3 GW of thermal generation throughout the United States. Panamint is a private equity firm headquartered in Incline Village, Nevada, that develops, acquires, and manages power generation and electric transmission assets and currently manages 1.0 GW of operating and development-stage conventional and renewable assets in North America.

Houlihan Lokey served as the exclusive financial advisor to Atlas and assisted in marketing, structuring, negotiating, and other financial aspects of the transaction on its behalf. This transaction highlights Houlihan Lokey’s continued success advising the largest market participants in the power industry and marks the third corporate finance transaction closed on behalf of Atlas Holdings within the fiscal year.