News Release
They finally decided to announce the sale of their interest in the Gregory Project. ATP gets $33 million after subtracting project debt, if the deal closes.
Given all the "ambulance chasing" law firms that are suing ATP, the company should consider buying a law firm, with some of the proceeds from these asset sales. We'd save a bundle on defending our beleagered company and management. (kidding)
Late last week, I held my nose, and I did buy a small position in their prefs. They definitely aren't investment grade. Management have up to now, demonstrated the financial acumen of sailors on shore leave.
2013-04-15 08:40 ET - News Release
Ms. Amanda Wagemaker reports
ATLANTIC POWER CORPORATION ANNOUNCES THE COMPLETED SALE OF THREE FLORIDA FACILITIES AND PROVIDES AN UPDATE ON OTHER ASSET SALES
Atlantic Power Corp. has closed its previously announced sale of the company's interests in three Florida projects, Auburndale Power Partners LP, Lake Cogen Ltd. and Pasco Cogen Ltd. (all figures are in U.S. dollars). The purchase price, including working capital adjustments, is 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 Jan. 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.
Update on other asset sales
In April, the company, along with its partners, entered into a purchase and sale agreement to sell its 17-per-cent interest in the Gregory project in Texas for gross proceeds of approximately $244-million. 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 earnings before interest, taxes, depreciation and amortization attributable to Gregory, included in the company's 2013 guidance provided in the company's Feb. 28 earnings release and on the March 1 conference call, are less than $2-million. The company has not provided a reconciliation of forward-looking non-generally accepted accounting principles 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-per-cent interest in the Path 15 transmission line in California. The company has received regulatory approvals for and expects to close the sale of Path 15 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, totalling $137-million as of Dec. 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.
We seek Safe Harbor.