- Capital Power Corporation (CPX) has partnered with Manulife Investment Management on behalf of the Manulife Infrastructure Fund II and its affiliates
- The partnership is for the acquisition of 100 per cent of the interests in MCV Holding Company, which owns Midland Cogeneration Venture
- The 1,633 megawatt natural gas combined-cycle cogeneration facility is being acquired from OMERS and its co-investors for a total of US$894 million
- Capital Power is a growth-oriented North American wholesale power producer with a strategic focus on sustainable energy
- Capital Power Corporation opened trading at $45.48
Capital Power Corporation (CPX) has partnered with Manulife Investment Management on behalf of the Manulife Infrastructure Fund II and its affiliates.
The partnership is for the acquisition of 100 per cent of the interests in MCV Holding Company, which owns Midland Cogeneration Venture The natural gas combined-cycle cogeneration facility, which has the capacity of 1,633 megawatts (MW), is being acquired from OMERS Infrastructure Management Inc. and its co-investors for a total of US$894 million, including the assumption of US$521 million of project-level debt. The transaction is expected to close in the third quarter of 2022, subject to regulatory approvals and other customary closing conditions.
Under the 50-50 joint venture with Manulife Investment Management, Capital Power and its joint venture partner will each contribute approximately US$186 million subject to working capital and other closing adjustments.
Capital Power will finance the transaction using cash on hand and its credit facilities and will not need to access the equity markets to finance the transaction.
It will also be responsible for operations and maintenance and asset management for which it will receive an annual management fee.
“We are pleased to partner with Manulife Investment Management on the acquisition of Midland Cogen, which is consistent with our strategy of acquiring mid-life contracted natural gas assets that are strategically positioned within their power markets,” stated Brian Vaasjo, President and CEO of Capital Power.
“The transaction provides immediate adjusted funds from operations (AFFO) accretion and is supported by highly contracted cash flows to 2030 and 2035 from long standing counter-parties,” he added.
“We are proud to grow our relationship with Capital Power – a partner with tremendous operational and asset management expertise,” said Scott Kushner, Managing Director, Infrastructure Investments at Manulife Investment Management.
Capital Power is a growth-oriented North American wholesale power producer with a strategic focus on sustainable energy headquartered in Edmonton, Alberta.
Capital Power Corporation opened trading at $45.48.
