BOSTON, Feb. 16, 2012 /PRNewswire/ -- Atlantic Power
Corporation (the "Company") today announced that it has entered
into an agreement with Primary Energy Recycling Corporation
("Primary Energy" or "PERC"), whereby PERC will purchase the
Company's 7,462,830.33 common membership interests in Primary
Energy Recycling Holdings, LLC ("PERH") (14.3% of PERH total
interests) for approximately US$24
million, plus a management termination fee of approximately
US$6.1M for a total price of
US$30.1 million. The agreed
upon price for the Company's private interest in PERH was
established on December 19, 2011 and
represented a 16% discount to the 60 day volume weighted average
trading price of Primary Energy's common shares at that time.
The transaction remains subject to pricing adjustment or
termination under certain circumstances. Completion of the
transaction is subject to PERC obtaining financing.
"Our minority interest in Primary Energy was acquired when
Atlantic purchased CPILP, and the sale of our position reflects our
focus on optimizing our current portfolio and selling positions
that are not core to our business," said Barry Welch, President and CEO of Atlantic
Power. "Primary Energy approached us with an offer and we viewed it
as an opportunity to rationalize our portfolio. The Primary
projects are different from the rest of our portfolio and we did
not think there were adequate operational synergies to maintain our
position."
On closing of the transaction, the management agreement, under
which an indirect subsidiary of Atlantic Power provides certain
operational and administrative services to PERC and its
subsidiaries, will be terminated on payment of a termination fee as
specified in the management agreement. If closing occurs as
expected in April 2012, Primary
Energy will pay the Company a US$6.1
million fee to terminate the management agreement. The
Company intends to use the proceeds from the sale of its interest
in PERH to pay down our revolving credit facility creating headroom
to finance future growth opportunities.
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. Our power generation
projects sell electricity to utilities and other large commercial
customers under long-term power purchase agreements, which seek to
minimize exposure to changes in commodity prices. The net
generating capacity of the Company's projects is approximately
2,140 MW, consisting of interests in 31 operational power
generation projects across 11 states and 2 provinces, one 53 MW
biomass project under construction in Georgia, and an 84-mile, 500 kilovolt electric
transmission line located in California. Atlantic Power also owns a
majority interest in Rollcast Energy, a biomass power plant
developer in Charlotte, NC. Atlantic Power is incorporated in
British Columbia, headquartered in
Boston and has offices in
Chicago, Toronto, Vancouver and San
Diego.
Our corporate strategy is to generate stable, contracted cash
flows from our existing assets to sustain our dividend payout to
shareholders while increasing the value of the company through
accretive acquisitions in North American markets. Our dividend is
currently paid monthly at an annual rate of Cdn$1.15 per share.
Atlantic Power has a market capitalization of approximately
$1.6 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 www.atlanticpower.com or
contact:
Atlantic Power Corporation
Amanda Wagemaker, Investor
Relations
(617) 977-2700
info@atlanticpower.com
Copies of 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.
Certain statements in this news release may constitute
"forward-looking statements," which reflect the expectations of the
Company regarding the sale of its membership interests in PERC at
an agreed upon price, which is subject to adjustment or termination
under certain circumstances. Such forward-looking statements
reflect current expectations regarding future events and operating
performance and speak only as of the date of this news
release. Such forward-looking statements are based on a
number of assumptions which may prove to be incorrect, including,
but not limited to the assumption that Primary Energy will obtain
financing and that the transaction will close in April
2012.
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, events
will occur. In addition to the assumptions described above,
reference should also be made to the factors discussed under "Risk
Factors" in the Company's proxy dated October 3, 2011. 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.
SOURCE Atlantic Power Corporation