The AES Corporation (NYSE: AES) and Alberta Investment
Management Corporation (AIMCo), on behalf of certain of its
clients, have agreed to acquire FTP Power LLC (sPower), the largest
independent owner, operator and developer of utility scale solar
assets in the United States, from Fir Tree Partners and its
minority owners, for $853 million in cash, plus the assumption of
$724 million in non-recourse debt. In connection with the
transaction, AES and AIMCo will each directly and independently
purchase and own slightly below 50% equity interests in sPower.
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sPower, a Fir Tree portfolio company that the firm capitalized
in 2014, owns and operates utility and commercial distributed
electrical generation systems across the United States. The sPower
portfolio includes 1,274 MW of solar and wind projects in operation
or under construction and a development pipeline of more than
10,000 MW located in the United States. The operating assets and
projects under construction are under long-term Power Purchase
Agreements (PPA) with an average remaining life of 21 years. The
offtakers under the PPAs have an average credit rating of A1. After
closing, AES’ ownership of renewable energy projects in operation
and under construction will grow from 8,278 MW to 9,552 MW,
including hydro, wind, solar and energy storage.
“We are very pleased to acquire sPower, the largest independent
solar developer in the United States. sPower not only brings 1.3 GW
of installed capacity with an average remaining contract life of
more than 20 years, but a first class management and development
team with a pipeline of more than 10 GW of projects,” said Andrés
Gluski, AES President and Chief Executive Officer.
“AIMCo is excited to acquire an approximate 50%
interest in sPower, on behalf of our clients and consistent with
our investment mandate, and in partnership with AES,”
stated Kevin Uebelein, Chief Executive Officer of AIMCo.
“sPower is an impressive organization that has and continues to
successfully develop and execute a robust renewable energy
development pipeline, delivering value to all of its many
stakeholders. Our partner, AES, is a world class leader in
sustainable energy and we are delighted to be working with
them.”
“It is extremely rewarding to realize Fir Tree’s vision for
sPower with this agreement between our company and AES and AIMCo,”
said Jeffrey Tannenbaum, Chairman of the Board of sPower and
founder of Fir Tree Partners. “sPower’s innovation and significant
commercial success in just three years is testament to its
outstanding management team and demonstrates that clean energy is a
strong and profitable tool for driving economic growth and
meaningful job creation for skilled workers. Clean energy is the
future and the opportunity ahead for sPower is very large. We
believe AES and AIMCo are the right partners to support the
company’s continued evolution and ambitious goals for clean energy
development, job creation, and greenhouse gas reductions.”
Ryan Creamer, Chief Executive Officer of sPower, said, “With the
help of Fir Tree, we have experienced incredible growth over the
last three years. We are excited to become part of the AES/AIMCo
partnership and we are confident that it positions us to continue
to grow, develop and maximize the platform that we have created. On
behalf of the entire sPower team, I want to thank Fir Tree for its
support and vision that have been so critical to our success.”
This transaction is expected to close by the third quarter of
2017, subject to review or approval by the Federal Energy
Regulatory Commission, the Committee on Foreign Investment in the
United States and the expiration or termination of any waiting
period under the Hart-Scott-Rodino Act. The acquisition price is
subject to customary post-signing purchase price adjustments.
AES will provide its 2017 guidance and longer-term expectations,
and discuss this transaction on its fourth quarter and full year
2016 financial review call on February 27, 2017.
A Fact Sheet listing sPower’s operating assets and projects
under construction accompanies this Press Release.
About AES
The AES Corporation (NYSE: AES) is a Fortune 200 global power
company. We provide affordable, sustainable energy to 17 countries
through our diverse portfolio of distribution businesses as well as
thermal and renewable generation facilities. Our workforce of
21,000 people is committed to operational excellence and meeting
the world’s changing power needs. Our 2015 revenues were $15
billion and we own and manage $37 billion in total assets. To learn
more, please visit www.aes.com. Follow AES on Twitter
@TheAESCorp.
About AIMCo
AIMCo is one of Canada’s largest and most diversified
institutional investment managers with more than $95 billion of
assets under management. AIMCo was established on January 1, 2008
with a mandate to provide superior long-term investment results for
its clients. AIMCo operates at arms-length from the Government of
Alberta and invests globally on behalf of 31 pension, endowment and
government funds in the Province of Alberta. For more information
on AIMCo please visit www.aimco.alberta.ca.
About sPower
Headquartered in Salt Lake City, with offices in San Francisco,
Long Beach and New York City, sPower is the largest private owner
of operating solar assets in the United States. sPower owns and
operates utility and commercial distributed electrical generation
systems across the U.S. producing in excess of 1.1 GW of power.
Additionally, sPower has an in-construction and development
pipeline in excess of 10 GW. For more information on sPower, please
visit www.spower.com.
About Fir Tree Partners
Fir Tree, founded in 1994, is a private investment firm with
approximately $10 billion of capital under management. The firm
invests worldwide in public and private companies, real estate, and
debt. Fir Tree manages assets on behalf of leading endowments,
foundations, pension funds, and sovereign wealth funds. The firm
maintains offices in New York and Miami.
AES Safe Harbor Disclosure
This news release contains forward-looking statements within the
meaning of the Securities Act of 1933 and of the Securities
Exchange Act of 1934. Such forward-looking statements include, but
are not limited to, statements regarding the expected timeline for
completing the proposed transaction, sPower’s projects under
development, the Company’s future cash flows, improvement in the
Company’s credit metrics and growth of the Company’s dividend.
Forward-looking statements are not intended to be a guarantee of
future results, but instead constitute AES’ current expectations
based on reasonable assumptions. Forecasted financial information
is based on certain material assumptions. These assumptions
include, but are not limited to, our accurate projections of future
interest rates, commodity price and foreign currency pricing,
continued normal levels of operating performance and electricity
volume at our distribution companies and operational performance at
our generation businesses consistent with historical levels, as
well as achievements of planned productivity improvements and
incremental growth investments at normalized investment levels and
rates of return consistent with prior experience.
Actual results could differ materially from those projected in
our forward-looking statements due to risks, uncertainties and
other factors. Important factors that could affect actual results
are discussed in AES’ filings with the Securities and Exchange
Commission (the “SEC”), including, but not limited to, the risks
discussed under Item 1A “Risk Factors” and Item 7: Management’s
Discussion & Analysis in AES’ 2015 Annual Report on Form 10-K
and in subsequent reports filed with the SEC. Readers are
encouraged to read AES’ filings to learn more about the risk
factors associated with AES’ business. AES undertakes no obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Any Stockholder who desires a copy of the Company’s 2015 Annual
Report on Form 10-K dated on or about February 23, 2016 with the
SEC may obtain a copy (excluding Exhibits) without charge by
addressing a request to the Office of the Corporate Secretary, The
AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203.
Exhibits also may be requested, but a charge equal to the
reproduction cost thereof will be made. A copy of the Form 10-K may
be obtained by visiting the Company’s website at www.aes.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170224005323/en/
AES Investor Contact:Ahmed Pasha, 703-682-6451orAES Media
Contact:Amy Ackerman, 703-682-6399orAIMCo Media Contact:Dénes
Németh, 780-392-3857orFir Tree Partners Media Contact:Taylor
Ingraham, 203-992-1230
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