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  • Capital Power Corporation (CPX) and Manulife Investment Management, on behalf of the Manulife Infrastructure Fund II and its affiliates, have acquired a 100-per-cent interest in MCV Holding Company
  • MCV Holding Company owns Midland Cogeneration Venture, a 1,633-megawatt natural gas combined-cycle cogeneration facility
  • Midland Cogen was acquired from OMERS Infrastructure Management Inc. and its co-investors for US$894 million
  • Capital Power is a North American wholesale power producer with a strategic focus on sustainable energy headquartered in Edmonton, Alberta
  • Manulife Investment Management is the global brand for the global wealth and asset management segment of Manulife Financial Corporation
  • Capital Power Corporation was down 1.607 per cent, trading at C$50.81 at 10:31 AM ET

Capital Power Corporation (CPX) and Manulife Investment Management have acquired a 100-per-cent interest in MCV Holding Company.

MCV Holding Company owns Midland Cogeneration Venture, a 1,633-megawatt natural gas combined-cycle cogeneration facility.

Midland Cogen was acquired from OMERS Infrastructure Management Inc. and its co-investors for US$894 million, subject to working capital and other closing adjustments. It includes the assumption of $521 million of project-level debt.

Under the 50/50 joint venture with Manulife Investment Management, Capital Power and its joint venture partner each contributed approximately $186 million.

Capital Power financed the transaction using cash on hand and its credit facilities.

Capital Power will be responsible for operations and maintenance, and asset management, for which it will receive an annual management fee.

Located in Michigan, Midland Cogen is the largest gas-fired cogeneration facility in North America, is a critical asset to support grid reliability during the transition to renewables and is well-positioned, given anticipated market conditions, for recontracting beyond 2030.

It currently operates under long-term contracts until 2030 and 2035 with high-quality counterparties.

For Capital Power, the acquisition provides immediate adjusted funds from operations (AFFO) accretion with the five-year average accretion projected to be $0.30 per share, representing a 7.0-per-cent increase.

Financial projections include an average adjusted EBITDA of $59 million per year (ranging from $85 million in 2023 and declining to $45 million in 2027) and an average AFFO of $35 million per year during the 5-year period from 2023 to 2027.

Capital Power is a North American wholesale power producer with a strategic focus on sustainable energy headquartered in Edmonton, Alberta.

Manulife Investment Management is the global brand for the global wealth and asset management segment of Manulife Financial Corporation.

Capital Power Corporation was down 1.607 per cent, trading at C$50.81 at 10:31 AM ET


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