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Proceeds from the sale will be used to reduce Emera corporate level
debt and support Emera’s capital investment opportunities within its
regulated utility businesses
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Increases Carlyle’s New England power generation portfolio by 1,100
megawatts (MW)
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Transaction is expected to close in first quarter 2019
HALIFAX, Nova Scotia--(BUSINESS WIRE)--
Emera Inc. (TSX:EMA) has agreed to sell its three natural gas-fired
generation facilities in New England, known as Bridgeport Energy,
Tiverton Power and Rumford Power, to an affiliate of The Carlyle Group
for US$590 million (C$780 million). Together, the facilities have the
capacity to generate approximately 1,100 MW.
“This transaction, part of the three-year funding plan we introduced
during our third quarter earnings results, increases Emera’s financing
flexibility to capitalize on our regulated growth opportunities today
and in the future,” said Scott Balfour, President & CEO of Emera. “Our
New England facilities delivered solid financial results during the five
years of our ownership, and distinguished themselves with industry
leading safety and operational performance. I want to thank our
dedicated teams whose expertise and commitment produced those
achievements. The Carlyle Group is highly regarded in the industry and
well positioned to lead these facilities to continued success.”
Matt O’Connor, Carlyle Group Managing Director and Head of Carlyle Power
Partners, said, “Through this acquisition, Carlyle Power Partners will
increase its generation capacity in the attractive New England market,
making us one of the largest owners of power generation facilities in
the region. We look forward to leveraging our existing market knowledge
to create additional value for Bridgeport Energy, Tiverton Power and
Rumford Power, building on their already strong track records of
operational excellence.”
Cogentrix, The Carlyle Group’s management platform in the power
generation space, will assume asset management, operations and
maintenance and energy management responsibilities for the portfolio.
Cogentrix currently manages Carlyle Power Partners’ fleet of power
plants in the Northeast U.S. totaling approximately 1,400 MW, and will
bring its management best practices to the portfolio.
The transaction is subject to the regulatory approvals of the United
States Federal Energy Regulatory Commission, and under the provisions of
the Hart-Scott-Rodino Antitrust Act, and is expected to close in first
quarter 2019.
J.P. Morgan served as Emera’s financial advisor on the transaction.
About Emera Inc.
Emera Inc. is a geographically diverse energy and services company
headquartered in Halifax, Nova Scotia with approximately $30 billion in
assets and 2017 revenues of more than $6 billion. The company invests in
electricity generation, transmission and distribution, gas transmission
and distribution, and utility energy services with a strategic focus on
transformation from high carbon to low carbon energy sources. Emera has
investments throughout North America, and in four Caribbean countries.
Emera’s common and preferred shares are listed on the Toronto Stock
Exchange and trade respectively under the symbol EMA, EMA.PR.A,
EMA.PR.B, EMA.PR.C, EMA.PR.E, EMA.PR.F. and EMA.PR.H. Depositary
receipts representing common shares of Emera are listed on the Barbados
Stock Exchange under the symbol EMABDR and on The Bahamas International
Securities Exchange under the symbol EMAB. Additional Information can be
accessed at www.emera.com
or at www.sedar.com.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager
with $212 billion of assets under management across 339 investment
vehicles as of September 30, 2018. Carlyle’s purpose is to invest wisely
and create value on behalf of its investors, many of whom are public
pensions. Carlyle invests across four segments – Corporate Private
Equity, Real Assets, Global Credit and Investment Solutions – in Africa,
Asia, Australia, Europe, the Middle East, North America and South
America. Carlyle has expertise in various industries, including:
aerospace, defense & government services, consumer & retail, energy,
financial services, healthcare, industrial, real estate, technology &
business services, telecommunications & media and transportation. The
Carlyle Group employs more than 1,625 people in 31 offices across six
continents.
Web: www.carlyle.com
Videos:
www.youtube.com/onecarlyle
Tweets:
www.twitter.com/onecarlyle
Podcasts:
www.carlyle.com/about-carlyle/market-commentary
Forward Looking Information
This news release contains forward-looking information within the
meaning of applicable securities laws with respect to, among other
things, the completion of the sale of Bridgeport Energy, Tiverton Power
and Rumford Power. The words “anticipates”, “believes”, “budget”,
“could”, “estimates, “expects”, “forecasts”, “intends”, “may”, “plans”,
“projects”, “schedule”, “should”, “targets”, “will”, “would” and similar
expressions are often intended to identify forward-looking information,
although not all forward-looking information contains these identifying
words. The forward-looking information includes, but is not limited to,
statements regarding (i) the risk that Emera may be unable to obtain
governmental and regulatory approvals required for the proposed sale;
(ii) the risk that other conditions to the closing of the proposed sale
may not be satisfied; and (iii) the timing to consummate the sale. There
can be no assurance that the proposed sale will be completed, or if it
is completed, that it will close within the anticipated time period. By
its nature, forward-looking information requires Emera to make
assumptions and is subject to inherent risks and uncertainties. These
statements reflect Emera management’s current beliefs and are based on
information currently available to Emera management. Additional detailed
information about these assumptions, risks and uncertainties is included
in Emera’s securities regulatory filings, including its Annual
Information Form, annual and interim Management’s Discussion and
Analysis, and in the notes to Emera’s annual and interim financial
statements, which filings can be found on SEDAR at www.sedar.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181126005450/en/
Emera Inc.
Investor Relations
Erin Power,
902-428-6760
erin.power@emera.com
Or
Ken
McOnie, 902-428-6945
ken.mconie@emera.com
Emera
Inc. Media
902-222-2683
media@emera.com
The
Carlyle Group Media
Christa Zipf
212-813-4578
Source: Emera Inc.