Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,424.85 162.29 1.00%
S&P 500 1,862.31 19.33 1.05%
NASDAQ 4,086.22 52.06 1.29%
Ticker Volume Price Price Delta
STOXX 50 3,139.26 47.74 1.54%
FTSE 100 6,584.17 42.56 0.65%
DAX 9,317.82 144.11 1.57%
Ticker Volume Price Price Delta
NIKKEI 14,417.53 -0.15 -0.00%
TOPIX 1,166.59 0.04 0.00%
HANG SENG 22,770.51 74.50 0.33%

Atlantic Power Corporation Announces Agreement to Sell Three Florida Facilities

Atlantic Power Corporation Announces Agreement to Sell Three Florida Facilities

BOSTON, Jan. 31, 2013 /CNW/ - Atlantic Power Corporation (NYSE: AT) (TSX: ATP) ("Atlantic Power" or the "Company") announced today that the Company and certain of its subsidiaries have entered into a definitive agreement with Quantum Utility Generation, LLC and certain of its affiliates to sell the Company's interests in three Florida projects (the "Sale"), Auburndale Power Partners Limited Partners ("Auburndale"), Lake Cogen, Ltd. ("Lake"), and Pasco Cogen, Ltd. ("Pasco") for a purchase price, including working capital adjustments, of approximately $136 million. Atlantic Power expects to receive net cash proceeds of approximately $111 million in the aggregate, after repayment of project-level debt at Auburndale and settlement of all outstanding natural gas swap agreements at Lake and Auburndale. The Company intends to use the net proceeds from the Sale to fully repay the Company's senior credit facility, which is expected to have an outstanding balance of approximately $67 million at close, and for general corporate purposes. The agreement contains representations, warranties and indemnification obligations that are customary in the industry. The Sale is subject to customary closing conditions and approvals, including approval from the Federal Energy Regulatory Commission, and is expected to close in the first quarter of 2013. All figures are in US$ unless stated otherwise.

"Our business model is focused on achieving stable, predictable cash flows from contracted power generation. Given our projections that the Florida energy market will not recover in the near-term to allow us to secure economic power purchase agreements ('PPAs'), we concluded, after considering all available options, that the sale of Lake and Auburndale maximizes shareholder value," said Barry Welch, President and CEO of Atlantic Power. "The average remaining PPA life of our portfolio, when taking into account the sale of the three Florida facilities and the proposed sales of the Delta-Person generating station and Gregory facility, will increase 19% from 9.7 years to 11.4 years."

About Atlantic Power

Atlantic Power is a leading publicly traded, power generation and infrastructure company with a well-diversified portfolio of assets in the United States and Canada. The Company's corporate strategy is to increase the value of the Company through accretive acquisitions in North American markets while generating stable, contracted cash flows from its existing assets. The Company's power generation projects sell electricity to utilities and other large commercial customers under long-term PPAs, which seek to minimize exposure to changes in commodity prices. The net generating capacity of the Company's projects is approximately 2,560 MW, consisting of interests in 33 operational power generation projects across 12 states and 2 provinces and also an 84-mile, 500 kilovolt electric transmission line located in California. In addition, the Company has a 53 MW biomass project under construction in Georgia, which is expected to achieve COD in the first quarter of 2013. Atlantic Power owns a majority interest in Rollcast Energy, a biomass power plant developer in Charlotte, NC. The Company also owns Ridgeline, a renewable development company in Seattle, WA with approximately 1,000 MW of wind and solar projects under development. Atlantic Power is incorporated in British Columbia, is headquartered in Boston and has offices in Chicago, Toronto, Vancouver, Seattle and San Diego.

Atlantic Power has a market capitalization of approximately $1.5 billion and 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 or contact:

Atlantic Power Corporation

Amanda Wagemaker, Investor Relations

(617) 977-2700

Copies of financial data and other publicly filed documents get filed on SEDAR at or on EDGAR at 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 forward-looking information as defined 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 future growth, results of operations, performance and business prospects and opportunities of the Company and its projects and other matters. 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 expectation that the average remaining PPA life of the
        Company's portfolio will increase 19% from 9.7 years to
        approximately 11.4 years after the currently proposed projects
        and facilities sales;
    --  the expectation that the Company will successfully sell the
        projects and facilities currently proposed for sale, including
        Delta-Person, Gregory, Auburndale, Lake, and Pasco and on the
        contemplated timetable and at the expected price, where
    --  the expectation that the Company will use net proceeds from the
        Sale to fully repay the Company's senior credit facility, and
        that the senior credit facility is expected to have an
        outstanding balance of approximately $67 million; and
    --  the expectation that the Company's 53 MW biomass project under
        construction in Georgia will achieve COD in the first quarter
        of 2013.

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.  A number of factors 
could cause actual results to differ materially from the results discussed in 
the forward-looking statements, including, but not limited to, the factors 
discussed under "Risk Factors" in the Company's periodic reports as filed with 
the U.S. Securities and Exchange Commission and applicable securities 
regulatory authorities in Canada from time to time.  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.  Readers are cautioned that such 
information may not be appropriate for other purposes.

PRN Photo Desk,

SOURCE: Atlantic Power Corporation

To view this news release in HTML formatting, please use the following URL:

CO: Atlantic Power Corporation
ST: Florida

-0- Jan/31/2013 13:01 GMT

Sponsored Links
Sponsored Links