Mirant Announces Agreement for Sale of Six U.S. Gas Plants
January 16 2007 - 7:52AM
PR Newswire (US)
ATLANTA, Jan. 16 /PRNewswire-FirstCall/ -- Mirant Corporation
(NYSE:MIR) announced today that it has entered into a definitive
purchase and sale agreement with LS Power Equity Partners, a member
of the LS Power Group, for the sale of six U.S. natural gas fired
plants for a purchase price of $1.407 billion, which includes
estimated working capital. The net proceeds to Mirant from the sale
after extinguishing $83 million of project-level debt are expected
to be $1.324 billion. The company does not expect to recognize any
significant tax or book gain on the transaction. The U.S. plants
being sold are the following: Zeeland (903 MW), West Georgia (613
MW), Shady Hills (469 MW), Sugar Creek (561 MW), Bosque (546 MW)
and Apex (527 MW), constituting a total of 3,619 MW. The
transaction is expected to close by the second quarter of 2007
after the satisfaction of certain customary conditions to closing.
"Although these plants do not fit within our business strategy,
they are excellent facilities," said Edward R. Muller, Chairman and
Chief Executive Officer of Mirant Corporation. "We wish LS Power
great success with them." As previously announced, Mirant plans to
continue returning cash to its shareholders upon completion of its
planned asset and business sales. The amount of cash returned will
be determined based on the outlook for the continuing business (1)
to preserve the credit profile of the continuing business, (2) to
maintain adequate liquidity for expected cash requirements
including, among other things, capital expenditures for the
continuing business, and (3) to retain sufficient working capital
to manage fluctuations in commodity prices. Proceeds from the sales
of the Zeeland and Bosque plants, expected to be approximately $500
million, will be reinvested in Mirant North America, a subsidiary
of Mirant Americas Generation, and/or used to retire debt at Mirant
North America. Mirant Corporation was advised in the transaction by
J. P. Morgan Securities Inc., as financial advisor, and King &
Spalding, as legal counsel. LS Power Equity Partners was advised by
Barclays Capital, as financial advisor, and Latham & Watkins,
as legal counsel. About Mirant Corporation Mirant is a competitive
energy company that produces and sells electricity in the United
States, the Caribbean, and the Philippines. Mirant owns or leases
approximately 17,300 megawatts of electric generating capacity
globally. The company operates an asset management and energy
marketing organization from its headquarters in Atlanta. For more
information, please visit http://www.mirant.com/. About LS Power
Group LS Power was founded in 1990 and is a fully integrated
development, investment and asset management group of companies
focused on the power industry. LS Power maintains offices in New
York, New Jersey, Missouri, California, Florida and Massachusetts.
http://www.lspower.com/ Cautionary Language Regarding
Forward-Looking Statements Some of the statements included herein
involve forward-looking information. Mirant cautions that these
statements involve known and unknown risks and that there can be no
assurance that such results will occur. There are various important
factors that could cause actual results to differ materially from
those indicated in the forward-looking statements, such as, but not
limited to, the ability of Mirant to satisfy the conditions to
closing of the transaction, including the absence of any material
adverse change that would prevent closing, and other factors
discussed in Mirant's Form 10-K for the year ended December 31,
2005, and its Form 10-Q for the quarter ended September 30, 2006.
Mirant undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. DATASOURCE: Mirant Corporation CONTACT:
Mirant Media contact: Felicia Browder, +1-678-579-3111, , Mirant
Investor Relations contacts: Mary Ann Arico, +1-678-579-7553, ,
Sarah Stashak, +1-678-579-6940, , all of Mirant Corporation; LS
Power contact: Darpan Kapadia, Managing Director of LS Power Group,
+1-212-615-3433, Web site: http://www.mirant.com/
http://www.lspower.com/
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