BOSTON , Jan. 31, 2013 /CNW/ – Atlantic Power Corporation (AT) (ATP.TO) (“Atlantic Power” or the “Company”) announced today that the Company and certain of its subsidiaries have entered into a definitive agreement with Quantum Utility Generation, LLC and certain of its affiliates to sell the Company’s interests in three Florida projects (the “Sale”), Auburndale Power Partners Limited Partners (“Auburndale”), Lake Cogen, Ltd. (“Lake”), and Pasco Cogen, Ltd. (“Pasco”) for a purchase price, including working capital adjustments, of approximately $136 million .
Atlantic Power expects to receive net cash proceeds of approximately $111 million in the aggregate, after repayment of project-level debt at Auburndale and settlement of all outstanding natural gas swap agreements at Lake and Auburndale.
The Company intends to use the net proceeds from the Sale to fully repay the Company’s senior credit facility, which is expected to have an outstanding balance of approximately $67 million at close, and for general corporate purposes.
The agreement contains representations, warranties and indemnification obligations that are customary in the industry. The Sale is subject to customary closing conditions and approvals, including approval from the Federal Energy Regulatory Commission, and is expected to close in the first quarter of 2013. All figures are in US$ unless stated otherwise.
“Our business model is focused on achieving stable, predictable cash flows from contracted power generation. Given our projections that the Florida energy market will not recover in the near-term to allow us to secure economic power purchase agreements (‘PPAs’), we concluded, after considering all available options, that the sale of Lake and Auburndale maximizes shareholder value,” said Barry Welch , President and CEO of Atlantic Power. “The average remaining PPA life of our portfolio, when taking into account the sale of the three Florida facilities and the proposed sales of the Delta-Person generating station and Gregory facility, will increase 19% from 9.7 years to 11.4 years.”
About Atlantic Power
Atlantic Power is a leading publicly traded, power generation and infrastructure company with a well-diversified portfolio of assets in the United States and Canada . The Company’s corporate strategy is to increase the value of the Company through accretive acquisitions in North American markets while generating stable, contracted cash flows from its existing assets.
The Company’s power generation projects sell electricity to utilities and other large commercial customers under long-term PPAs, which seek to minimize exposure to changes in commodity prices. The net generating capacity of the Company’s projects is approximately 2,560 MW, consisting of interests in 33 operational power generation projects across 12 states and 2 provinces and also an 84-mile, 500 kilovolt electric transmission line located in California. In addition, the Company has a 53 MW biomass project under construction in Georgia , which is expected to achieve COD in the first quarter of 2013. Atlantic Power owns a majority interest in Rollcast Energy, a biomass power plant developer in Charlotte, NC . The Company also owns Ridgeline, a renewable development company in Seattle , WA with approximately 1,000 MW of wind and solar projects under development. Atlantic Power is incorporated in British Columbia, is headquartered in Boston and has offices in Chicago , Toronto , Vancouver , Seattle and San Diego .
Atlantic Power has a market capitalization of approximately $1.5 billion and trades on the New York Stock Exchange under the symbol AT and on the Toronto Stock Exchange under the symbol ATP. For more information, please visit the Company’s website at www.atlanticpower.com or contact:
Atlantic Power Corporation
Amanda Wagemaker, Investor Relations