BOSTON, April 15, 2013 /CNW/ - Atlantic Power Corporation
(NYSE: AT) (TSX: ATP) ("Atlantic Power" or the "Company") today
announced the closing of its previously announced sale of the
Company's interests in three Florida projects (the "Florida Project Sale"),
Auburndale Power Partners Limited Partners ("Auburndale"), Lake
Cogen, Ltd. ("Lake"), and Pasco
Cogen, Ltd. for a purchase price, including working capital
adjustments, of approximately $140
million. After repayment of project-level debt at
Auburndale and settlement of all
outstanding natural gas swap agreements at Lake and Auburndale, net cash proceeds to Atlantic
Power from the Florida Project Sale were approximately $117 million. This includes $92 million received at closing and cash
distributions from the projects of approximately $25 million received since January 1, 2013. The Company expects to use the
net proceeds from the Florida Project Sale to fully repay the
Company's senior credit facility, which has an outstanding balance
of approximately $64 million, and the
remainder will be held for general corporate purposes, including
future accretive growth opportunities. All figures are in US$
unless stated otherwise.
Update on Other Asset Sales
In April, the Company, along with its partners, entered into a
purchase and sale agreement to sell its 17% interest in the
Gregory project in Texas ("Gregory") for gross proceeds of
approximately $244 million (the
"Gregory Sale"). The Company's share of the Gregory Sale proceeds,
net of project debt repayment, working capital adjustments and
transaction expenses, is expected to be approximately $33 million. Closing of the Gregory Sale is
subject to customary closing conditions and regulatory and other
approvals and is expected to occur in the third quarter of 2013.
Project Adjusted EBITDA attributable to Gregory and included in the Company's 2013
guidance provided in the Company's February
28th earnings release and on the March 1st conference call is less than
$2 million. The Company has not
provided a reconciliation of forward-looking non-GAAP measures, due
primarily to variability and difficulty in making accurate
forecasts and projects, as not all of the information necessary for
a quantitative reconciliation is available to the Company without
unreasonable efforts.
Separately, as previously announced, in March 2013, the Company entered into a purchase
and sale agreement to sell its 100% interest in the Path 15
transmission line in California
("Path 15"). The Company has received regulatory approvals for and
expects to close the sale of Path 15 (the "Path 15 Sale") at the
end of April 2013. Net cash proceeds
from the Path 15 Sale, including working capital adjustments, are
expected to be approximately $55
million. All project level debt issued by Path 15, totaling
$137 million as of December 31, 2012, will transfer to the purchaser
with the Path 15 Sale. The Path 15 Sale is subject to customary
closing conditions. Project Adjusted EBITDA attributable to Path 15
was excluded from the Company's 2013 EBITDA guidance as it is an
asset held for sale.
The Company intends to use the net proceeds from the Gregory
Sale and the Path 15 Sale for general corporate purposes and to
invest in future accretive growth opportunities.
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 power purchase agreements, 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 2,966 MW in which its
aggregate ownership interest is approximately 2,049 MW. Its current
portfolio of continuing operations consists of interests in
twenty-eight operational power generation projects across ten
states in the United States and
two provinces in Canada. Atlantic
Power also has a 53 MW biomass project under construction in
Georgia, and recently acquired
Ridgeline Energy, Inc., a wind and solar development company
located in Seattle, Washington,
which enhances its ability to develop, acquire and operate wind and
solar energy projects in 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
$600 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
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 Company will use net proceeds from the
Florida Project Sale to fully repay the Company's senior credit
facility and to invest in future accretive growth
opportunities;
- the expectation that the Company will successfully sell
Gregory and Path 15, for which
purchase and sale agreements have been executed, including the
receipt of all customary regulatory and other approvals required in
connection with such transactions, the anticipated closing dates
and the expected net proceeds to the Company; and
- the expectation that the Company will use net proceeds from the
Gregory Sale and the Path 15 Sale to invest in future accretive
growth opportunities.
Forward-looking statements involve significant risks and
uncertainties and 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