BOSTON, March 11, 2013 /PRNewswire/ -- Atlantic
Power Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the
"Company") announced today that a subsidiary of the Company has
entered into a purchase and sale agreement (the "Agreement") with
Duke-American Transmission Company, LLC, a joint venture between
Duke Energy and American Transmission Co., to sell the Company's
interests in the Path 15 transmission project (the "Sale"),
including Atlantic Path 15 Transmission, LLC, Atlantic Holdings
Path 15, LLC and Atlantic Path 15, LLC (collectively, "Path 15").
Atlantic Power expects to receive net cash proceeds from the Sale,
including working capital adjustments, of approximately
$56 million. All project level debt
issued by Path 15, totaling $137
million as of December 31,
2012, will transfer with the Sale. The Company intends to
use the net proceeds from the Sale for general corporate purposes
and to invest in future accretive growth opportunities. The
Agreement contains representations, warranties and indemnification
obligations that are customary in the Company's industry. The Sale
is subject to customary closing conditions and approvals, including
approval from the Federal Energy Regulatory Commission and certain
lender approvals, and is expected to close in the second quarter of
2013.
"As we continue to strengthen our renewable and natural gas
portfolio, the Path 15 transmission project is no longer a part of
the strategic core to our business model," said Barry Welch, President and CEO of Atlantic
Power. "Since acquiring the project in 2006, we have successfully
completed two FERC rate case filings and have received relatively
stable cash flow. However, the sale of Path 15, which is the most
highly-levered asset in our portfolio, will allow us to maintain a
focus on generation going forward."
About Atlantic Power
Atlantic Power owns and operates a diverse fleet of power
generation and infrastructure assets in the United States and Canada. Atlantic Power's power generation
projects sell electricity to utilities and other large commercial
customers largely under long-term PPAs, which seek to minimize
exposure to changes in commodity prices. Its power generation
projects in operation have an aggregate gross electric generation
capacity of approximately 3,366 MW in which its aggregate ownership
interest is approximately 2,117 MW. These totals exclude projects
designated as held for sale at December 31,
2012 and its 40% interest in the Delta-Person generating
station for which Atlantic Power entered into an agreement to sell
in December 2012. On January 30, 2013, Atlantic Power and certain of
its subsidiaries entered into an agreement to sell their interests
in the Auburndale Power Partners, L.P., Lake CoGen, Ltd and
Pasco CoGen, Ltd. projects. As
described above, Atlantic Power has entered into a purchase and
sale agreement to sell its 100% interest in its Path 15
transmission project. Its current portfolio of continuing
operations consists of interests in twenty nine operational power
generation projects across eleven states in the United States and two provinces in
Canada. In addition, Atlantic
Power has one 53 MW biomass project under construction in
Georgia. Recently, Atlantic Power
acquired a wind and solar development company, Ridgeline Energy,
Inc., located in Seattle,
Washington, which will enhance its ability to develop,
construct, and operate wind and solar energy projects across
the United States and Canada. Atlantic Power also owns a majority
interest in Rollcast Energy, a biomass power plant developer in
North Carolina.
Atlantic Power has a market capitalization of approximately
$650 million 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
Atlantic Power'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 Company will successfully sell the
Path 15 project on the contemplated timetable and at the expected
price; and
- the expectation that the Company will use net proceeds from the
Sale to invest in future accretive growth opportunities.
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.
SOURCE Atlantic Power Corporation