NextEra Energy Resources, LLC, the energy subsidiary of NextEra Energy, Inc. has announced that one of its subsidiaries has entered into an agreement to sell its ownership interest in its Marcus Hook generating assets to an investment affiliate of Starwood Energy Group Global, LLC, an energy infrastructure investment firm that specializes in value-add power generation, transmission and storage energy projects.
The total consideration to be paid is US$760 million, including estimated working capital at closing. Upon closing, NextEra Energy Resources expects the sale to result in net proceeds of approximately US$255 million after repayment of the existing project related financing. The impact of the disposition of assets at the time of closing will be excluded from adjusted earnings.
The transaction includes the 790 MW combined-cycle Marcus Hook Energy Center and the 50 MW simple-cycle Marcus Hook 50 Energy Center. Both of these facilities are natural gas-fired power plants located primarily in Marcus Hook, Delaware County, Pennsylvania (US).
The transaction is expected to close in the fourth quarter of 2016, pending the receipt of necessary regulatory approvals and satisfaction of other customary closing conditions.
Barclays is serving as financial advisor to NextEra Energy Resources, and Simpson Thacher & Bartlett is legal counsel. Morrison & Foerster LLP is serving as Starwood Energy's legal counsel.
Armando Pimentel, president and CEO of NextEra Energy Resources, said:
"This transaction is part of our ongoing strategy to further optimize our power generation assets, while recycling capital into our growing long-term contracted asset portfolio."
Himanshu Saxena, senior managing director and co-head, Starwood Energy Group, added:
"We are pleased to have entered into this transaction. This is a quality asset with a strong operating history in a very attractive location."