Maxim Power Corp. Announces Sale of the Alberta Power Project
January 25 2012 - 9:01PM
Marketwired
Maxim Power Corp. ("MAXIM" or the "Corporation") (TSX:MXG)
announced today that it has agreed to sell its 26 MW Alberta Power
Project facilities for $12.95 million to AltaGas Pipeline
Partnership ("AltaGas"). The Alberta Power Project consists of four
separate facilities in southern Alberta: Taber, Burdette, Coaldale
and Fort MacLeod. For the past seven years, the power generated
from these facilities has been sold to an affiliate of AltaGas
under a long term tolling agreement and the facilities have been
operated by AltaGas. The transaction is subject to customary
closing conditions.
MAXIM's historic contribution to Adjusted EBITDA(1) from the
tolling agreement is approximately $1.7 million annually. The sale
is accretive to MAXIM shareholders, resulting in a multiple of
enterprise value to Adjusted EBITDA of 7.6 times. MAXIM will
utilize the proceeds from the sale of these assets to advance its
development projects in Alberta: Deerland, Milner Expansion, and
Mine 14.
About MAXIM
Based in Calgary, Alberta, MAXIM is an independent power
producer, which acquires or develops, owns and operates innovative
and environmentally responsible power projects. MAXIM currently
owns and operates 41 power plants in western Canada, United States
and France, having 789 MW of electric and 117 MW of thermal net
generating capacity. MAXIM trades on the TSX under the symbol
"MXG". For more information about MAXIM, visit our website at
www.maximpowercorp.com.
(1) Adjusted EBITDA is a non-GAAP financial measure that is
provided to assist management and investors in determining the
Corporation's approximate operating cash flows before interest,
income taxes, depreciation and amortization. Adjusted EBITDA does
not have any standardized meaning prescribed by Canadian GAAP and
may not be comparable to similar measures presented by other
companies. Refer to Non-GAAP measures in MAXIM's MD&A for
reconciliations between non-GAAP financial measures and comparable
measures calculated in accordance with Canadian GAAP.
Statements in this release which describe MAXIM's intentions,
expectations or predictions, or which relate to matters that are
not historical facts are forward-looking statements. These
forward-looking statements involve known and unknown risks and
uncertainties which may cause the actual results, performances or
achievements of MAXIM to be materially different from any future
results, performances or achievements expressed in or implied by
such forward-looking statements. MAXIM may update or revise any
forward-looking statements, whether as a result of new information,
future events or changing market and business conditions and will
update such forward looking statements as required pursuant to
applicable securities laws.
Contacts: Maxim Power Corp. John R. Bobenic President and CEO
(403) 263-3021 Maxim Power Corp. Michael R. Mayder Vice President,
Finance and CFO (403) 263-3021 www.maximpowercorp.com
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