Investor group purchases $70 million of 20% Convertible Senior Secured PIK Notes of Somerset Cayuga Holding Company in private placement

Client(s) Carlyle Group, The; Marathon Asset Management; Mackay Shields; Standard General; and State of California Public Employees Retirement System

Jones Day represented a group of institutional investors, including The Carlyle Group, Marathon Asset Management, Mackay Shields, Standard General, and the State of California Public Employees Retirement System, in connection with the purchase of a portion of the $70 million of 20% Convertible Senior Secured PIK Notes due 2017 issued by Somerset Cayuga Holding Company in a private placement.

The investors, members of a subcommittee of pass-through certificate holders in AES Eastern Energy's chapter 11 bankruptcy cases, along with certain other holders of the pass-through certificates, formed Somerset Cayuga Holding Company to own and operate two generation facilities of AES Eastern Energy acquired in a credit bid transaction.