Leidos Holdings (NYSE: LDOS) has reached an agreement on the terms under which it will assume ownership of a 37.5-MW (net) biomass-fueled facility, being constructed in Plainfield, Conn., by Leidos Constructors.
Acting in its capacity as a secured lender, Leidos said Oct. 15 that it has pursued a consensual foreclosure to assume ownership of the project company upon receipt of all necessary governmental approvals expected later this year. Due to recent events, Leidos said it has taken this action to ensure the project company continues to meet its commitments and to maximize the long term value of the facility.
The facility is on schedule to be completed by the end of 2013. Connecticut Light & Power will purchase power from the plant based on a 15-year off-take agreement, utilizing the plant’s status as a renewable power source.
Leidos said it intends to complete the facility as originally scheduled, qualify for relevant tax benefits, operate the plant and commence marketing efforts to sell the facility to renewable power plant investors.
“We’ve reached this agreement in an effort to maximize the value of our investment for our shareholders,” said Leidos Chairman and CEO John Jumper. “We believe the facility is an attractive asset for potential buyers, as it is one of the only Class 1 biomass plants in the state of Connecticut.
Leidos is a science and technology solutions company working to address some of the world’s toughest challenges in national security, health, and engineering. Leidos is headquartered in Reston, Va. and had about $6bn in revenues for fiscal year 2013, on a pro forma basis, following the spin-off of the company’s technical, engineering and enterprise IT business on Sept. 27, 2013.
This project was first announced in January 2012. Science Applications International Corp. (NYSE: SAI) and the Carlyle Energy Mezzanine Opportunities Group announced an agreement to provide financing for construction of the Plainfield Renewable Energy (PRE) biomass project. The PRE project is owned by a subsidiary of Enova Energy Group and located on a 27-acre site in Plainfield, Conn.