TransCanada completes sale of US Northeast power assets to Helix Generation
TransCanada Corporation announced this week that it completed the sale of its remaining U.S. Northeast merchant power generation assets to Helix Generation, LLC, an affiliate of LS Power Equity Advisors.
The assets sold for approximately US$2.1 billion, including a purchase price adjustment as a result of an unplanned outage at Ravenswood prior to close. Proceeds from the transaction will be used to fully retire
the remaining acquisition bridge facilities that partially funded the acquisition of the Columbia Pipeline Group.
The sale includes four power facilities, Ravenswood, Ironwood, Ocean State and Kibby Wind, which together generate nearly 4,000 megawatts (MW).
TransCanada said, that after assessing its options, it decided to taper off its TransCanada Power Marketing Ltd (TCPM) operations and realize the value of the remaining marketing contracts and working capital over time.
In addition to the closing of this transaction, the prior sale of its hydro generation assets and the decision on TCPM, TransCanada anticipates that it will realize approximately US$3.7 billion from the monetization of its U.S. Northeast merchant power business.
