Emera completes purchase of three gas-fired power plants

Source:Emera

Emera Inc. (TSX:EMA) has successfully closed the transaction to purchase three combined-cycle natural gas-fired power generating facilities in New England from Capital Power Corporation (TSX:CPX).

“Adding gas generation to our existing portfolio in New England has been a strategic objective for Emera,” said Chris Huskilson, President and Chief Executive Officer of Emera Inc. “We are looking forward to applying our skills, expertise and knowledge of the New England natural gas and electricity markets to these high quality assets”.

The purchase was announced in August 2013. The plants add a total 1,050 megawatts to Emera’s existing generation capacity in northeast North America. The facilities are Bridgeport Energy (520 MW) in Bridgeport, Connecticut, Tiverton Power (265 MW) in Tiverton, Rhode Island, and Rumford Power (265 MW) in Rumford, Maine. The purchase price was USD $541 million.

Emera recently received repayment of its USD $150 million loan to Northeast Wind Partners, which was facilitated by the recent refinancing of that entity’s indebtedness. These funds, together with a newly established one year $350 million non-revolving credit facility and other cash resources on hand, were used to finance the closing. During the first half of 2014, Emera expects to finance the assets with long-term, entity level debt in the range of 50% of the purchase price.

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