MACQUARIE INFRASTRUCTURE COMPANY LLC

MACQUARIE INFRASTRUCTURE COMPANY LLC

Previous company name

Name change date

Company Overview
Macquarie Infrastructure Company LLC (MIC), with headquarters located in New York, is a New York-based company that owns, operates and invests in a diversified group of infrastructure businesses, which provide basic, everyday services, in the United States and other developed countries. The company focuses on the ownership and operation of infrastructure businesses with the following types of long-life physical assets: “user pays” assets, contracted assets and regulated assets. Incorporated in 2004, its businesses consist of an airport services business, 50% of the company that owns one of the largest bulk liquid storage terminal businesses in the US, a gas production and distribution business, a district energy business and an airport parking business.
MIC’s Airport Services business, Atlantic Aviation, operates 69 fixed base operations (FBOs) on leased land at 67 airports throughout the United States and one heliport in New York City. The network is the second largest in the industry by number of sites. The business primarily serves the corporate and private jet segment of the general aviation industry. Services include terminal operations, refueling, de-icing, aircraft parking and hangarage.
In its Bulk Liquid Storage Terminals concern, MIC holds a 50% equity interest in the company that owns International-Matex Tank Terminals (IMTT). IMTT is an industry leader in the handling and storage of bulk liquid products, which owns and operates eight terminals in the US and two additional facilities in Canada. The terminals handle petroleum (crude oil and refined) chemical and vegetable and animal oil products for customers including refiners, commodities traders and specialty chemical manufacturers.
MIC’s Gas Production and Distribution business is represented by The Gas Company (TGC), a producer and distributor of synthetic natural gas (SNG) and a distributor of propane gas on the six major islands of Hawaii. TGC operates an SNG plant and more than 1,100 miles of pipeline serving approximately 36,000 utility customers (businesses and households). The business serves an additional 31,000 non-utility customers via on-site propane tanks or portable gas cylinders. Both propane and the SNG feedstock are obtained from one or both of the two refineries on the island of Oahu.
The Macquarie Infrastructure Company’s District Energy line includes Thermal Chicago, which operates the largest cooling system in the United States, providing chilled water under long-term contracts to approximately 100 buildings. The business also provides district heating and cooling to a hotel/casino complex and adjacent shopping mall in downtown Las Vegas, Nevada.
In the field of Airport Parking, the company operates 30 facilities in 20 major airports markets across the United States. Together these facilities cover more than 40,000 car parking spaces. The business is being rebranded as “FastTrack Parking.” It provides customers with 24-hour secure parking located at sites near airport terminals.
Business Summary
Macquarie Infrastructure Company LLC (MIC) owns, operates and invests in a diversified group of infrastructure businesses in the United States. The Company operates in two segments: the Energy-Related Businesses and the Aviation-Related Business. The Energy-Related Businesses include 50% interest in a bulk liquid storage terminal business, such as International Matex Tank Terminals (IMTT), which provides bulk liquid storage and handling services at 10 marine terminals in the United States and two in Canada and is a participant in this industry in the Unites States, based on capacity; a gas production and distribution business (The Gas Company), which is a full-service gas energy company, making gas products and services available in Hawaii, and 50.01% controlling interest in a district cooling business (District Energy). The Aviation-Related Business include an airport services business (Atlantic Aviation).
Description and history
Macquarie Infrastructure Company LLC (MIC) owns, operates and invests in a diversified group of infrastructure businesses in the United States. The Company offers investors an opportunity to participate directly in the ownership of infrastructure businesses, which traditionally have been owned by governments or private investors, or have formed part of vertically integrated companies. The Company operates in two segments: the Energy-Related Businesses and the Aviation-Related Business. The Energy-Related Businesses include 50% interest in a bulk liquid storage terminal business, such as International Matex Tank Terminals (IMTT), which provides bulk liquid storage and handling services at 10 marine terminals in the United States and two in Canada and is a participant in this industry in the Unites States, based on capacity; a gas production and distribution business (The Gas Company), which is a full-service gas energy company, making gas products and services available in Hawaii, and 50.01% controlling interest in a district cooling business (District Energy), which operates such system in the United States and serves various customers in Chicago, Illinois and Las Vegas, Nevada. The Aviation-Related Business include an airport services business (Atlantic Aviation), which consists of a network of 72 fixed base operations (FBOs), providing products and services, including fuel and aircraft hangaring/parking to owners and operators of private jets at 68 airports and one heliport in the United States.

Energy-Related Businesses

The Company owns 50% of IMTT, which stores and handles petroleum products, various chemicals, renewable fuels and vegetable and animal oils. IMTT is a provider of bulk liquid storage terminal services in the Unites States, based on capacity. During the year ended December 31, 2009, IMTT generated approximately 43% of its terminal revenue and approximately 42% of its terminal gross profit at its Bayonne, New Jersey facility in New York Harbor. Approximately 41% of IMTT’s total terminal revenue and approximately 48% of its terminal gross profit was generated by its St. Rose, Gretna, Avondale and Geismar facilities, which together service the lower Mississippi River region (with St. Rose as the largest contributor). IMTT also owns Oil Mop, an environmental response and spill clean-up business. Oil Mop has a network of facilities along the Unites States Gulf Coast between Houston and New Orleans. IMTT provides bulk liquid storage services principally to vertically integrated petroleum product producers and refiners, chemical manufacturers, food processors and traders of bulk liquid petroleum, chemical and agricultural products.

The Gas Company is a government franchised full-service gas company, manufacturing and distributing gas products and services in Hawaii. The market includes Hawaii’s approximately 1.3 million residents and approximately 6.5 million visitors in 2009. The Gas Company manufactures synthetic natural gas (SNG), for its utility customers on Oahu, and distributes Liquefied Petroleum Gas (LPG), to utility and non-utility customers throughout the state’s six primary islands. The utility business serves approximately 35,500 customers through localized pipeline distribution systems located on the islands of Oahu, Hawaii, Maui, Kauai, Molokai and Lanai. The utility business includes the manufacture, distribution and sale of SNG on the island of Oahu and distribution and sale of LPG. Utility revenue consists principally of sales of SNG and LPG. The non-utility business sells and distributes LPG to approximately 33,000 customers. LPG is delivered by truck to individual tanks located on customer sites on Oahu, Hawaii, Maui, Kauai, Molokai and Lanai. Non-utility revenue is generated primarily from the sale of LPG delivered to customers. The Gas Company’s two products, SNG and LPG, are relatively clean-burning fuels that produce lower levels of carbon emissions than other hydrocarbon fuels, such as coal or oil. The Gas Company manufactures SNG at its plant located west of the Honolulu business district. The non-utility business serves gas on all six primary islands to customers that are not connected to the business’ utility pipeline system.

Through December 22, 2009, District Energy consisted of a 100% ownership of Thermal Chicago and a 75% interest in Northwind Aladdin and all of the senior debt of Northwind Aladdin. The remaining 25% equity interest in Northwind Aladdin is owned by Nevada Electric Investment Company (NEICO), an indirect subsidiary of NV Energy, Inc. On December 23, 2009, it sold 49.99% of its membership interests in this business to John Hancock Life Insurance Company and John Hancock Life Insurance Company (U.S.A.) (collectively John Hancock). District Energy operates district cooling system in the United States. The system serves over 100 customers in downtown Chicago under long-term contracts and one customer outside the downtown area. District Energy produces chilled water at five plants located in downtown Chicago and distributes it through a closed loop of underground piping for use in the air conditioning systems of large commercial, retail and residential buildings in the central business district. District Energy also owns a site-specific heating and cooling plant that serves a single customer in Chicago outside the downtown area. This plant has the capacity to produce 4,900 tons of cooling and 58 million British Thermal Units (BTUs), of heating per hour.

The Company competes with Kinder Morgan.

Aviation-Related Business

The business, Atlantic Aviation FBO Inc., operates 72 fixed-based operations (FBOs), at 68 airports and one heliport throughout the United States. Atlantic Aviation’s FBOs primarily provide fueling and fuel-related services, aircraft parking and hangar services to owners/operators of jet aircraft in the general aviation sector of the air transportation industry.

The Company competes with Signature Flight Support, Encore and Million Air Interlink.

Business Line
Owns, operates and invests in a diversified group of infrastructure businesses, which provide basic, everyday services, in the United States and other developed countries
Subsidiary
AAC SUBSIDIARY LLC
Advisor
KPMG LLP
IPO date
12/15/2004
US SIC Code
5171
Company Address
125, West 55 th Street

City province or state postal code
10019, NEW YORK, NY
Phone: +1 212 231 1000
Fax:
Country address: UNITED STATES OF AMERICA
Website url: www.macquarie.com/mic