Atlantic Power Corp.(AT: Quote,ATP.TO: Quote) announced that a subsidiary of the company has entered into a purchase and sale agreement with Duke-American Transmission Company, LLC, a joint venture between Duke Energy and American Transmission Co., to sell the Company’s interests in the Path 15 transmission project , including Atlantic Path 15 Transmission, LLC, Atlantic Holdings Path 15, LLC and Atlantic Path 15, LLC.
Atlantic Power expects to receive net cash proceeds from the Sale, including working capital adjustments, of approximately $56 million. All project level debt issued by Path 15, totaling $137 million as of December 31, 2012, will transfer with the Sale.
The company said it intends to use the net proceeds from the Sale for general corporate purposes and to invest in future accretive growth opportunities. The Agreement contains representations, warranties and indemnification obligations that are customary in the Company’s industry.
The Sale is subject to customary closing conditions and approvals, including approval from the Federal Energy Regulatory Commission and certain lender approvals, and is expected to close in the second quarter of 2013.
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by RTT Staff Writer
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