Emera to sell natural gas power plants to Carlyle for $780 mln

Halifax-based energy utility Emera Inc (TSX: EMA) has agreed to sell its three natural gas-fired generation facilities in New England to U.S. private equity firm Carlyle Group for $780 million.

The deal is expected to close in the first quarter of 2019.

The facilities, known as Bridgeport Energy, Tiverton Power and Rumford Power, together have a capacity to generate about 1,100 megawatts.

Emera said the proceeds will be used to reduce debt and support capital investment opportunities.

Cogentrix, Carlyle’s power generation platform, will assume asset management, operations, and maintenance and energy management responsibilities for the portfolio.

PRESS RELEASE

Emera to Sell New England Gas-Fired Generation Facilities to The Carlyle Group for US$590 Million

Proceeds from the sale will be used to reduce Emera corporate level debt and support Emera’s capital investment opportunities within its regulated utility businesses
Increases Carlyle’s New England power generation portfolio by 1,100 megawatts (MW)
Transaction is expected to close in first quarter 2019

November 26, 2018

HALIFAX, Nova Scotia–(BUSINESS WIRE)–Emera Inc. (TSX:EMA) has agreed to sell its three natural gas-fired generation facilities in New England, known as Bridgeport Energy, Tiverton Power and Rumford Power, to an affiliate of The Carlyle Group for US$590 million (C$780 million). Together, the facilities have the capacity to generate approximately 1,100 MW.

“This transaction, part of the three-year funding plan we introduced during our third quarter earnings results, increases Emera’s financing flexibility to capitalize on our regulated growth opportunities today and in the future,” said Scott Balfour, President & CEO of Emera. “Our New England facilities delivered solid financial results during the five years of our ownership, and distinguished themselves with industry leading safety and operational performance. I want to thank our dedicated teams whose expertise and commitment produced those achievements. The Carlyle Group is highly regarded in the industry and well positioned to lead these facilities to continued success.”

Matt O’Connor, Carlyle Group Managing Director and Head of Carlyle Power Partners, said, “Through this acquisition, Carlyle Power Partners will increase its generation capacity in the attractive New England market, making us one of the largest owners of power generation facilities in the region. We look forward to leveraging our existing market knowledge to create additional value for Bridgeport Energy, Tiverton Power and Rumford Power, building on their already strong track records of operational excellence.”

Cogentrix, The Carlyle Group’s management platform in the power generation space, will assume asset management, operations and maintenance and energy management responsibilities for the portfolio. Cogentrix currently manages Carlyle Power Partners’ fleet of power plants in the Northeast U.S. totaling approximately 1,400 MW, and will bring its management best practices to the portfolio.

The transaction is subject to the regulatory approvals of the United States Federal Energy Regulatory Commission, and under the provisions of the Hart-Scott-Rodino Antitrust Act, and is expected to close in first quarter 2019.

J.P. Morgan served as Emera’s financial advisor on the transaction.

About Emera Inc.

Emera Inc. is a geographically diverse energy and services company headquartered in Halifax, Nova Scotia with approximately $30 billion in assets and 2017 revenues of more than $6 billion. The company invests in electricity generation, transmission and distribution, gas transmission and distribution, and utility energy services with a strategic focus on transformation from high carbon to low carbon energy sources. Emera has investments throughout North America, and in four Caribbean countries. Emera’s common and preferred shares are listed on the Toronto Stock Exchange and trade respectively under the symbol EMA, EMA.PR.A, EMA.PR.B, EMA.PR.C, EMA.PR.E, EMA.PR.F. and EMA.PR.H. Depositary receipts representing common shares of Emera are listed on the Barbados Stock Exchange under the symbol EMABDR and on The Bahamas International Securities Exchange under the symbol EMAB. Additional Information can be accessed at www.emera.com or at www.sedar.com.

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $212 billion of assets under management across 339 investment vehicles as of September 30, 2018. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Credit and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,625 people in 31 offices across six continents.

Web: www.carlyle.com
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Podcasts: www.carlyle.com/about-carlyle/market-commentary

Contacts
Emera Inc.
Investor Relations
Erin Power, 902-428-6760
erin.power@emera.com
Or
Ken McOnie, 902-428-6945
ken.mconie@emera.com
Emera Inc. Media
902-222-2683
media@emera.com
The Carlyle Group Media
Christa Zipf
212-813-4578