Atlantic Power Corporation Announces Agreement to Sell Three
Florida Facilities
BOSTON, Jan. 31, 2013 /PRNewswire/ -- Atlantic Power
Corporation (NYSE: AT) (TSX: ATP) ("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
(617) 977-2700
info@atlanticpower.com
Copies of financial data and other publicly filed documents get
filed on SEDAR at www.sedar.com or on EDGAR at
www.sec.gov/edgar.shtml under "Atlantic Power Corporation" or on
the Company's website.
Cautionary Note Regarding Forward-looking
Statements
To the extent any statements made in this news release contain
information that is not historical, these statements are
forward-looking statements within the meaning of Section 27A of the
U.S. Securities Act of 1933, as amended, and Section 21E of the
U.S. Securities Exchange Act of 1934, as amended, and
forward-looking information as defined under Canadian securities
law (collectively, "forward-looking statements").
Certain statements in this news release may constitute
"forward-looking statements", which reflect the expectations of
management regarding future growth, results of operations,
performance and business prospects and opportunities of the Company
and its projects and other matters. These statements, which
are based on certain assumptions and describe the Company's future
plans, strategies and expectations, can generally be identified by
the use of the words "may," "will," "project," "continue,"
"believe," "intend," "anticipate," "expect" or similar expressions
that are predictions of or indicate future events or trends and
which do not relate solely to present or historical matters.
Examples of such statements in this press release include, but are
not limited, to statements with respect to the following:
- the expectation that the average remaining PPA life of the
Company's portfolio will increase 19% from 9.7 years to
approximately 11.4 years after the currently proposed projects and
facilities sales;
- the expectation that the Company will successfully sell the
projects and facilities currently proposed for sale, including
Delta-Person, Gregory, Auburndale,
Lake, and Pasco and on the
contemplated timetable and at the expected price, where
applicable;
- the expectation that the Company will use net proceeds from the
Sale to fully repay the Company's senior credit facility, and that
the senior credit facility is expected to have an outstanding
balance of approximately $67 million;
and
- the expectation that the Company's 53 MW biomass project under
construction in Georgia will
achieve COD in the first quarter of 2013.
Forward-looking statements involve significant risks and
uncertainties, should not be read as guarantees of future
performance or results, and will not necessarily be accurate
indications of whether or not, or the times at or by which, such
performance or results will be achieved. A number of factors
could cause actual results to differ materially from the results
discussed in the forward-looking statements, including, but not
limited to, the factors discussed under "Risk Factors" in the
Company's periodic reports as filed with the U.S. Securities and
Exchange Commission and applicable securities regulatory
authorities in Canada from time to
time. Although the forward-looking statements contained in
this news release are based upon what are believed to be reasonable
assumptions, investors cannot be assured that actual results will
be consistent with these forward-looking statements, and the
differences may be material. These forward-looking statements
are made as of the date of this news release and, except as
expressly required by applicable law, the Company assumes no
obligation to update or revise them to reflect new events or
circumstances. The financial outlook information contained in
this news release is presented to provide readers with guidance on
the cash distributions expected to be received by the Company and
to give readers a better understanding of the Company's ability to
pay its current level of distributions into the future.
Readers are cautioned that such information may not be appropriate
for other purposes.
SOURCE Atlantic Power Corporation