Emera to Sell New England Gas-Fired Generation Facilities to The Carlyle Group for US$590 Million
- Proceeds from the sale will be used to reduce Emera corporate level debt and support Emera’s capital
investment opportunities within its regulated utility businesses
- Increases Carlyle’s New England power generation portfolio by 1,100 megawatts (MW)
- Transaction is expected to close in first quarter 2019
Emera Inc. (TSX:EMA) has agreed to sell its three natural gas-fired generation facilities in New England, known as Bridgeport
Energy, Tiverton Power and Rumford Power, to an affiliate of The Carlyle Group for US$590 million (C$780 million). Together, the
facilities have the capacity to generate approximately 1,100 MW.
“This transaction, part of the three-year funding plan we introduced during our third quarter earnings results, increases
Emera’s financing flexibility to capitalize on our regulated growth opportunities today and in the future,” said Scott Balfour,
President & CEO of Emera. “Our New England facilities delivered solid financial results during the five years of our ownership,
and distinguished themselves with industry leading safety and operational performance. I want to thank our dedicated teams whose
expertise and commitment produced those achievements. The Carlyle Group is highly regarded in the industry and well positioned to
lead these facilities to continued success.”
Matt O’Connor, Carlyle Group Managing Director and Head of Carlyle Power Partners, said, “Through this acquisition, Carlyle
Power Partners will increase its generation capacity in the attractive New England market, making us one of the largest owners of
power generation facilities in the region. We look forward to leveraging our existing market knowledge to create additional value
for Bridgeport Energy, Tiverton Power and Rumford Power, building on their already strong track records of operational
excellence.”
Cogentrix, The Carlyle Group’s management platform in the power generation space, will assume asset management, operations and
maintenance and energy management responsibilities for the portfolio. Cogentrix currently manages Carlyle Power Partners’ fleet of
power plants in the Northeast U.S. totaling approximately 1,400 MW, and will bring its management best practices to the
portfolio.
The transaction is subject to the regulatory approvals of the United States Federal Energy Regulatory Commission, and under the
provisions of the Hart-Scott-Rodino Antitrust Act, and is expected to close in first quarter 2019.
J.P. Morgan served as Emera’s financial advisor on the transaction.
About Emera Inc.
Emera Inc. is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia with approximately $30
billion in assets and 2017 revenues of more than $6 billion. The company invests in electricity generation, transmission and
distribution, gas transmission and distribution, and utility energy services with a strategic focus on transformation from high
carbon to low carbon energy sources. Emera has investments throughout North America, and in four Caribbean countries. Emera’s
common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A,
EMA.PR.B, EMA.PR.C, EMA.PR.E, EMA.PR.F. and EMA.PR.H. Depositary receipts representing common shares of Emera are listed on the
Barbados Stock Exchange under the symbol EMABDR and on The Bahamas International Securities Exchange under the symbol EMAB.
Additional Information can be accessed at
www.emera.com or at
www.sedar.com.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $212 billion of assets under management across 339
investment vehicles as of September 30, 2018. Carlyle’s purpose is to invest wisely and create value on behalf of its investors,
many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and
Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise
in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services,
healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The
Carlyle Group employs more than 1,625 people in 31 offices across six continents.
Web:
www.carlyle.com
Videos:
www.youtube.com/onecarlyle
Tweets:
www.twitter.com/onecarlyle
Podcasts:
www.carlyle.com/about-carlyle/market-commentary
Forward Looking Information
This news release contains forward-looking information within the meaning of applicable securities laws with respect to, among
other things, the completion of the sale of Bridgeport Energy, Tiverton Power and Rumford Power. The words “anticipates”,
“believes”, “budget”, “could”, “estimates, “expects”, “forecasts”, “intends”, “may”, “plans”, “projects”, “schedule”, “should”,
“targets”, “will”, “would” and similar expressions are often intended to identify forward-looking information, although not all
forward-looking information contains these identifying words. The forward-looking information includes, but is not limited to,
statements regarding (i) the risk that Emera may be unable to obtain governmental and regulatory approvals required for the
proposed sale; (ii) the risk that other conditions to the closing of the proposed sale may not be satisfied; and (iii) the timing
to consummate the sale. There can be no assurance that the proposed sale will be completed, or if it is completed, that it will
close within the anticipated time period. By its nature, forward-looking information requires Emera to make assumptions and is
subject to inherent risks and uncertainties. These statements reflect Emera management’s current beliefs and are based on
information currently available to Emera management. Additional detailed information about these assumptions, risks and
uncertainties is included in Emera’s securities regulatory filings, including its Annual Information Form, annual and interim
Management’s Discussion and Analysis, and in the notes to Emera’s annual and interim financial statements, which filings can be
found on SEDAR at
www.sedar.com.
Emera Inc.
Investor Relations
Erin Power, 902-428-6760
erin.power@emera.com
Or
Ken McOnie, 902-428-6945
ken.mconie@emera.com
Emera Inc. Media
902-222-2683
media@emera.com
The Carlyle Group Media
Christa Zipf
212-813-4578
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