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CRSS CAPITAL CLOSES FINANCING ON $70 MILLION COGENERATION TRANSACTION

CRSS CAPITAL CLOSES FINANCING ON $70 MILLION COGENERATION TRANSACTION
 HOUSTON, Oct. 27 /PRNewswire/ -- CRSS Capital, Inc., a majority owned subsidiary of CRSS Inc., (NYSE: CRX), announced today the completion of project development activities and term financing for a $70.6 million cogeneration transaction at the Stone Container Corporation (NYSE: STO) paper mill in Hopewell, Va. Prior to completing project financing activities for the project, CRSS Capital sold a 50 percent interest in the project at Catamount Energy Corporation, a wholly owned subsidiary of Central Vermont Public Service Corporation (NYSE: CV). CRSS Capital selected Catamount Energy over several other competing bids from utility affiliates. CRSS Capital and Catamount Energy each hold a 50 percent interest in the project.
 The Stone Container project represents CRSS Capital's second project involving the development of a cogeneration project in Hopewell. In addition, this is CRSS Capital's second successful development venture for an industrial energy project financing. CRSS Capital now has ownership interests in seven power, cogeneration and industrial energy projects including the $300 million Naheola Cogeneration recovery unit project located near Butler, Ala. and 50 percent of the Hopewell Cogeneration Facility, a $200 million, 365,000 KW combined cycle cogeneration facility located in Hopewell.
 The project structure developed by CRSS Capital consists of the acquisition of a 57,000 KW power sales agreement between Stone Container Corporation and Virginia Electric and Power Company concurrent with the long-term lease of power generation assets at the Stone mill. The leased assets include a power boiler, a chemical recovery boiler, turbine generator, and related steam and power generation assets. Stone Container will purchase processed black liquor, steam, and other utility services from the cogeneration facility over the 12-year life of the lease.
 Term financing in the amount of $56,500,000 for the project was provided by a group of institutional lenders. The institutions include: New York Life Insurance Company and insurance company affiliates of CIGNA Corporation.
 James T. Stewart, CRSS Capital president and chief executive officer stated, "The Stone transaction represents CRSS Capital's second industrial project financing in the pulp and paper industry. The unique project structuring for the acquisition of the power sales agreement will allow Stone Container to redeploy capital from its investment in utility assets to other corporate purposes. Also, as the cogeneration project is already in operation, in addition to the value creation associated with the financing of the transaction, CRSS Capital will realize significant operating earnings from the project this fiscal year." Additionally, Steward added, "CRSS Capital's first industrial energy project financing, the $300 million Naheola Cogeneration project, is expected to achieve operational acceptance by June 1993. CRSS Capital owns a 50 percent interest in the project in partnership with James River Corporation (NYSE: JR)."
 CRSS Inc., through its subsidiaries, is one of the largest design and construction services companies in the nation and, through CRSS Capital, Inc., is a leader in the independent power and cogeneration industry. CRSS Capital, Inc., an 81 percent owned subsidiary, currently has interests in projects with assets in excess of $730 million producing in excess of 575 MW of power generation and in excess of 5 million pounds/hr of steam generating capacity.
 -0- 10/27/92
 /CONTACT: Bruce Wilkinson, 713-552-2324, or Bill Gardiner, 713-552-2160, both of CRSS, Inc./
 (CRX) CO: CRSS Capital Inc.; CRSS Inc. ST: Texas IN: SU: CON


AH-OS -- NY041 -- 5298 10/27/92 10:36 EST
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Publication:PR Newswire
Date:Oct 27, 1992
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