ATLANTA, May 21, 2018 /PRNewswire/ -- Southern
Company today announced that it has entered into agreements to sell
Gulf Power Company, Florida City Gas and the entities holding
Southern Power's interests in Plant Oleander and Plant Stanton to
NextEra Energy for an aggregate purchase price of approximately
$6.475 billion. Net of debt, this
reflects an equity value of approximately $5.075 billion.
"This sale provides Southern Company the opportunity to deliver
great value to our organization, bolster our financial profile and
continue to build the future of energy as one of America's premier
energy companies," said Thomas A.
Fanning, chairman, president and CEO of Southern Company.
"These Florida businesses are being sold at a price that provides
substantial value to our stockholders, while entrusting the
customers of these exceptional franchises to a high-quality utility
company that has a well-established presence in the state."
The transactions are designed to allow Gulf Power and Florida
City Gas to continue their customer-focused business models and
strong commitments to safety, reliability, customer service and
community engagement.
Proceeds from these transactions are intended to be used to
reduce debt and improve Southern Company's balance sheet. Southern
Company's goal remains to simultaneously provide benefits to
customers, preserve solid credit metrics and improve the
contribution of its state-regulated utilities to its value
proposition. The opportunity to fund the business without raising
significant additional capital makes the value proposition of these
transactions even stronger.
Completion of each of these transactions is conditioned upon,
among other things, the expiration or termination of any applicable
waiting period under the Hart-Scott-Rodino Antitrust Improvements
Act of 1976. The Gulf Power and Plant Oleander and Plant Stanton
transactions also will require approval by the Federal Energy
Regulatory Commission and the Federal Communications Commission.
The target completion for the sales of Gulf Power and Southern
Power's interests in Plant Stanton and Plant Oleander is the first
half of 2019. The Florida City Gas transaction's target completion
is third quarter 2018.
Southern Company will host a financial analyst call to discuss
this announcement at 9:45 a.m. Eastern
Time today, during which Fanning and Chief Financial Officer
Art P. Beattie will discuss the
transaction. Investors, media and the public may listen to a live
webcast of the call and view associated slides that were posted
this morning at http://investor.southerncompany.com/webcasts. A
replay of the webcast will be available on the site for 12
months.
Headquartered in Juno Beach,
Florida, NextEra (NYSE: NEE) is a leading clean energy
company with consolidated revenues of approximately $17.2 billion, that operates approximately 46,790
megawatts of net generating capacity and employs approximately
14,000 people in 33 states and Canada as of year-end 2017. For more
information about NextEra Energy companies, visit these websites:
www.NextEraEnergy.com, www.FPL.com,
www.NextEraEnergyResources.com.
Advisors
Citigroup Global Markets Inc. is serving as
the exclusive financial advisor and Jones
Day, Troutman Sanders LLP and Gibson Dunn & Crutcher LLP
are serving as legal counsel to Southern Company.
About Southern Company
Southern Company (NYSE: SO) is America's premier energy company,
with 46,000 megawatts of generating capacity and 1,500 billion
cubic feet of combined natural gas consumption and throughput
volume serving 9 million customers through its subsidiaries. The
company provides clean, safe, reliable and affordable energy
through electric operating companies in four states, natural gas
distribution companies in seven states, a competitive generation
company serving wholesale customers across America and a nationally
recognized provider of customized energy solutions, as well as
fiber optics and wireless communications. Southern Company brands
are known for excellent customer service, high reliability and
affordable prices that are below the national average. Through an
industry-leading commitment to innovation, Southern Company and its
subsidiaries are creating new products and services for the benefit
of customers. We are building the future of energy by developing
the full portfolio of energy resources, including carbon-free
nuclear, advanced carbon capture technologies, natural gas,
renewables, energy efficiency and storage technology. Southern
Company has been named by the U.S. Department of Defense and G.I.
Jobs magazine as a top military employer, recognized among the Top
50 Companies for Diversity and the number one Company for Progress
by DiversityInc, and designated as one of America's Best Employers
by Forbes magazine. Visit our website at
www.southerncompany.com.
Cautionary Note Regarding Forward-Looking
Statements
This release contains forward-looking statements which are made
pursuant to safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
include statements, among other things, concerning the expected
timing of completion and financial and other benefits of the
transactions described herein. These forward-looking statements are
often characterized by the use of words such as "expect,"
"anticipate," "plan," "believe," "may," "should," "will," "could,"
"continue" and the negative or plural of these words and other
comparable terminology. Although Southern Company believes that the
expectations reflected in such forward-looking statements are
reasonable, such statements involve risks and uncertainties and
undue reliance should not be placed on such statements. Certain
material factors or assumptions are applied in making
forward-looking statements, including, but not limited to, factors
and assumptions regarding the items outlined above. Actual results
may differ materially from those expressed or implied in such
statements. Important factors that could cause actual results to
differ materially from these expectations include, among other
things, the following: the failure to receive, on a timely basis or
otherwise, the required approvals by government or regulatory
agencies (including the terms of such approvals); the risk that a
condition to closing of one or more of the transactions may not be
satisfied; the inability to achieve the expected financial benefits
of the proceeds generated by the transactions; and other risk
factors relating to the energy industry, as detailed from time to
time in Southern Company's reports filed with the Securities and
Exchange Commission. There can be no assurance that any of the
transactions will in fact be consummated.
Additional information about these factors and about the
material factors or assumptions underlying such forward-looking
statements may be found under Item 1A. in Southern Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2017. Southern Company cautions that
the foregoing list of important factors that may affect future
results is not exhaustive. When relying on forward-looking
statements to make decisions with respect to Southern Company,
investors and others should carefully consider the foregoing
factors and other uncertainties and potential events. All
subsequent written and oral forward-looking statements concerning
the transactions or other matters attributable to Southern Company
or any other person acting on its behalf are expressly qualified in
their entirety by the cautionary statements referenced above. The
forward-looking statements contained herein speak only as of the
date of this release. Southern Company undertakes no obligation to
update or revise any forward-looking statement, except as may be
required by law.
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SOURCE Southern Company