Power stations sold for $746 million
19 Jan 2004
El Paso Merchant Energy, a business unit of El Paso Corporation, has agreed to sell 25 domestic power generation facilities to Northern Star Generation, a wholly owned subsidiary of AIG Highstar Generation, for approximately $746 million. The deal includes the assumption of approximately $174 million of consolidated debt.
The 25 power generation facilities are located in seven states across the USA and have a net generation capacity of approximately 1,850 megawatts.
'We are very pleased with this transaction, which is a major step in the execution of our long-range plan,' said Doug Foshee, president and chief executive officer of El Paso.
'So far we have announced or closed $2.3 billion of the $3.6 billion to $3.9 billion targeted under the plan, and we expect additional progress in the first quarter,' added Foshee.
The transaction, which is said to represent a significant portion of El Paso's domestic power portfolio, is expected to close during the second quarter of 2004. The sale is subject to customary conditions, including the receipt of Hart Scott Rodino approval and other regulatory approvals.
