Maxim Power Corp. (TSX: MXG) sold its subsidiary, Maxim Power USA, to a unit of Rockland Capital for $112 million, including the assumption of $22 million of debt resulting in sales proceeds of $90 million.
Maxim USA owns and operates five natural gas-fired power plants in New Jersey, Connecticut, Rhode Island, Massachusetts and Montana totaling 446 MW of generating capacity. Credit Suisse Securities was Maxim’s exclusive financial advisor for the deal, and Morgan Lewis & Bockius LLP served as legal counsel.
The deal is expected to close in fourth quarter 2013, pending regulatory approvals and customary closing conditions. The sale is structured as a lockbox structure under which Patriot will bear the risk and receive the rewards of economic ownership of Maxim USA from April 1, 2013 onward.
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