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Capital Power announces strategic acquisition of Goreway Power Station and a $130 million subscription receipt offering
Capital Power announces strategic acquisition of Goreway Power Station and a $130 million ...
About this update from Capital Power Corporation
[{"type":"text","content":"\n\n\n\nCapital Power announces strategic acquisition of Goreway Power Station and a $130 million subscription receipt offering\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nEDMONTON, April 29, 2019\n\n\n\n $977 million acquisition materially increases contracted adjusted EBITDA and is immediately accretive to adjusted funds from operations per share\n/NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/\n EDMONTON, April 29, 2019 /CNW/ - Capital Power Corporation (Capital Power or the Company) (TSX: CPX) announced today that it has entered into an agreement to acquire Goreway Power Station Holdings Inc., which owns the Goreway Power Station, an 875 megawatt (MW) natural gas combined cycle generation facility. Goreway Power Station Holdings Inc. is jointly owned by JERA Co. Inc., and Toyota Tsusho Corporation. The purchase price is $387 million in total cash consideration, subject to working capital and other closing adjustments, and the assumption of $590 million of project level debt (the Acquisition). The Acquisition is expected to close in the second quarter of 2019 and is subject to regulatory approvals and other customary closing conditions.\n\"The Goreway facility is an excellent strategic fit to our growth plans given its size, excellent operating history, location, and remaining contract term to 2029,\" said Brian Vaasjo, President and CEO of Capital Power. \"It leverages our significant operating capability and, in combination with our other Ontario natural gas assets, it will provide operating and market synergies over time. With its strategic location in the Greater Toronto Area (GTA) load centre and the flexibility it can provide, the Goreway facility is an important asset in Ontario's electric system.\"\nThe Goreway facility has a 20-year Accelerated Clean Energy Supply Contract expiring in June 2029 with the Ontario Independent Electricity System Operator (IESO) (DBRS: A(high) / Moody's: Aa3).\nThe Acquisition will be financed with the net proc...