American Electrical Energy is promoting its 1,365 MW unregulated, contracted renewable power portfolio to IRG Acquisition Holdings, a partnership owned by Invenergy, CDPQ and funds managed by Blackstone Infrastructure, at an enterprise worth of $1.5 billion together with undertaking debt.
The sale portfolio consists of 14 initiatives, representing 1,200 MW of wind and 165 MW of photo voltaic in 11 states. The renewable energy from the initiatives is contracted below long-term agreements with different utilities, companies and municipalities.
AEP plans to speculate roughly $40 billion over the following 5 years in its regulated wires and technology enterprise with a concentrate on including 17 GW of recent technology assets and extra resilient, environment friendly transmission and distribution infrastructure to serve prospects.
“We’re dedicated to de-risking the corporate and prioritizing investments in our core regulated companies,” says Julie Sloat, AEP’s president and CEO. “The proceeds from the sale shall be directed to the numerous pipeline of alternatives now we have to reinforce service for patrons throughout our footprint and advance our clear power transition.”
The corporate introduced its plan to promote the property in February 2022 and launched a aggressive bidding course of in August. J.P. Morgan is serving as lead monetary advisor, and Citigroup International Markets is serving as monetary advisor to AEP for this transaction. Hunton Andrews Kurth LLP is serving as authorized counsel to AEP.
The sale is predicted to shut within the second quarter; AEP expects to web roughly $1.2 billion in money after taxes, transaction charges and different changes.