Chicago, IL – March 03, 2010; City Capital Advisors is pleased to announce that on March 3, 2010, the business operations and assets of Chicago-based North American Energy Credit and Clearing Corp. (NECC), a leading clearinghouse for the over-the-counter electric power and natural gas markets, were purchased by and will receive the financial support of NASDAQ OMX Group, Inc., the world’s largest exchange company. City Capital served as the exclusive financial advisor to NECC in this transaction.
Transaction Summary
In the summer of 2009, NECC engaged City Capital to assist it in obtaining financial support and/or a purchaser for its unique clearinghouse operations, which focus on the clearing of contracts for the physical delivery of electric power and natural gas as well as related financial power and gas contracts in the U.S. energy markets. City Capital managed a global process in which it contacted both strategic and financial investors interested in providing NECC with the financial backing needed to support its growth, including the possibility of a sale of a controlling interest in the NECC business. Ultimately, NASDAQ OMX acquired the NECC operations and will be supporting the growth of NECC’s clearinghouse operations. The industry experience and financial backing of NASDAQ OMX were compelling factors for NECC in selecting a partner. NECC’s management team will continue to operate the business within NASDAQ OMX.
About NECC
NECC’s clearing services support the U.S. physical power and gas markets by integrating the physical and financial markets through market-neutral clearing services. Key customers include physical traders of power and gas such as utilities and merchant generators, as well as financial institutions such as banks, investment banks, trading houses and hedge funds. Operating as a market-neutral “riskless principal,” the NECC clearinghouse enters matching positions with the counterparties to electric power and/or natural trades and manages the credit risk on both sides of a trade using standard clearinghouse type margining.
About NASDAQ OMX Group
The NASDAQ OMX Group, Inc., is the world’s largest exchange company. It delivers trading, exchange technology and public company services across six continents, with approximately 3,700 listed companies. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX also recently completed the first cross-border merger of clearinghouses with the combination of its Nord Pool and Nordic clearinghouses to clear Nordic equities, fixed income and power derivatives. NASDAQ OMX also plans to offer central clearing in its U.K. power derivatives market in 2010.
About City Capital Advisors
City Capital is a results-oriented investment and merchant banking advisory firm dedicated to delivering business owners optimal value for their companies. Client engagements are managed exclusively by highly experienced senior investment bankers. Advisory capabilities include mergers and acquisitions, typically in the $30 million to $500 million value range, leveraged recapitalizations, private capital raising for growth and ownership transitions, financial restructurings, and managing direct investments.Since becoming a FINRA registered broker-dealer in 2007, City Capital has successfully advised on transactions totaling approximately $1.5 billion.