Atlantic Power to Sell Three Power Projects

Atlantic Power (NYSE: AT  ) says it has a "corporate strategy ... to increase the value of the Company through accretive acquisitions in North American markets while generating stable, contracted cash flows from its existing assets." But, on Thursday, the electric utility found a new, completely opposite way to raise cash -- making a one-time divestiture of assets.

This morning, Atlantic announced the planned sale of three Florida power projects, Auburndale Power Partners Limited, Lake Cogen, and Pasco Cogen, to Quantum Utility Generation, LLC, for a total purchase price of $136 million. Assuming the sale goes through, Atlantic expects to net $111 million cash from the sale after repaying some project-level debt, and settling some swaps.

Atlantic said in a statement that it will use some of these proceeds to "fully repay the Company's senior credit facility" -- but the company will still have close to $1.9 billion in other debt. The balance of the cash will go to "general corporate purposes." The transaction is expected to close in Q1 2013.

Atlantic shares are down 3.5% on the news, at $12.40.


Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 01, 2013, at 5:40 PM, WillBoWaggins wrote:

    Hey Fool,

    AT's corporate strategy is to grow the co. and generate stable dividends. 2 of those 3 plants that were sold were losing their contracted cash flow this year. Maybe AT is thinking they can better deploy the proceeds to acquire/develop other cash generating assets. Hmmm?

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2229038, ~/Articles/ArticleHandler.aspx, 9/22/2014 8:18:45 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement