DEDHAM, Mass., June 26, 2015 /PRNewswire/ -- Atlantic Power
Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the
"Company") announced today that it has completed the previously
disclosed sale of its wind portfolio to an affiliate of SunEdison,
Inc. (NYSE: SUNE) for cash proceeds of approximately $347 million, net of closing adjustments.
The wind portfolio consisted of five operating wind projects in
Idaho and Oklahoma with a net ownership by Atlantic
Power of 521 megawatts.
At closing, the Company also deconsolidated approximately
$249 million of project debt and
$229 million of noncontrolling
interest related to tax equity interests at Canadian Hills and the
minority ownership interests at Rockland and Canadian Hills.
Atlantic Power also announced today that it has called for
redemption all of its outstanding 9.0 percent Senior Unsecured
Notes due November 2018. The outstanding principal amount to
be redeemed is approximately $310.9
million. The Notes will be redeemed in approximately
thirty days at a redemption price equal to 104.50 percent of the
principal amount thereof, plus accrued interest.
"The sale of our wind projects and the redemption of our Senior
Unsecured Notes achieve two major components of our plan – cost
reduction, including interest expense, and debt reduction.
The combined impact is cash flow positive on an annualized basis,"
said James J. Moore, Jr., President
and Chief Executive Officer of Atlantic Power. "These actions
also strengthen our balance sheet by reducing our leverage and
improve our medium-term debt maturity profile. We are
continuing to explore other opportunities to reshape our remaining
corporate debt with a goal of further improving our
creditworthiness," Mr. Moore added.
Net proceeds to Atlantic Power from the wind sale are expected
to be approximately $333 million
after estimated transaction fees and transaction-related
taxes. Proceeds will be used to fund the redemption of the
Senior Unsecured Notes, consistent with the assumptions contained
in the Company's 2015 guidance provided on May 7, 2015.
About Atlantic Power
Atlantic Power owns and operates a diverse fleet of power
generation assets in the United
States and Canada.
The Company'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. Atlantic Power's
power generation projects in operation have an aggregate gross
electric generation capacity of approximately 2,137 megawatts
("MW") in which its aggregate ownership interest is approximately
1,502 MW. The Company's current portfolio consists of
interests in twenty-three operational power generation projects
across nine states in the United
States and two provinces in Canada.
Atlantic Power 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 certain financial data and other publicly filed
documents are 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 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 the future growth, results of operations,
performance and business prospects and opportunities of the Company
and its projects. 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 sale of the wind projects and redemption of the Senior
Unsecured Notes being cash flow positive on an annualized
basis;
- the strengthening of the Company's balance sheet by reducing
its leverage and improving its medium-term debt maturity profile;
and
- the Company's ability to reshape its remaining corporate debt
and improve its creditworthiness.
Forward-looking statements involve significant risks and
uncertainties, 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. Please refer to the
factors discussed under "Risk Factors" and "Forward-Looking
Information" in the Company's periodic reports as filed with the
Securities and Exchange Commission from time to time for a detailed
discussion of the risks and uncertainties affecting the Company,
including, without limitation, the Company's ability to evaluate
and/or implement potential options, including asset sales or joint
ventures, if the valuation of a particular asset or assets is
compelling, to raise additional capital for growth and/or potential
debt reduction. 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. The financial outlook information contained in
this news release is presented to provide readers with guidance on
the cash distributions expected to be received by the Company and
to give readers a better understanding of the Company's ability to
pay its current level of distributions into the future. The
Company's ability to achieve its longer-term goals, including those
described in this news release, is based on significant assumptions
relating to and including, among other things, the general
conditions of the markets in which it operates, revenues, internal
and external growth opportunities, its ability to sell assets at
favorable prices or at all and general financial market and
interest rate conditions. The Company's actual results may
differ, possibly materially and adversely, from these
goals. Readers are cautioned that such information may not be
appropriate for other purposes.
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SOURCE Atlantic Power Corporation