Three investment firms - Springleaf Investments, Lionfish Investments, and Greenwich Asset Holding - have decided to make an investment of about $150 million in a North American natural gas provider, Clean Energy Fuels, as part of an initiative to support the natural gas fuel sector in North America.
The massive investment comprises 7.50% of convertible notes, which are due in 2016. The notes can be converted to shares of common stock at Clean Energy. The investment is slated for closing on or before 30 August 2011, provided some customary conditions are satisfied.
The investment is focused on promoting the development of natural gas fueling infrastructure by Clean Energy, which includes the development, building and functioning of compressed natural gas (CNG) and liquefied natural gas (LNG) fueling stations. It also encompasses the related support services, maintenance, management, and marketing of those fueling stations, including the building and operation of offloading facilities, delivery trucks, and production assets.
Natural gas fuels considerably bring down expenses for owners of vehicles and fleet,and enable 20% reduction in emission of greenhouse gases in light-duty vehicles and 23% decrease in emission in medium to heavy-duty vehicles. Moreover, for North America, natural gas is a safe source of energy, as 98% of the consumed natural gas is manufactured in Canada and the U.S.
Chesapeake Energy had in recent times invested $150 million in Clean Energy’s natural gas highway program. CEO of Chesapeake Energy, Aubrey K. McClendon, commenting about the latest investment in Clean Energy, hailed the global investors for extending support to the natural gas sector in North America.
Source: http://www.cleanenergyfuels.com