MIC Enters into Agreements to Sell Operating Renewables Businesses
- Sales of wind and solar power generation assets generate gross proceeds of $215 million
- Transactions expected to close progressively throughout 2019, subject to receipt of regulatory approvals and consents
NEW YORK: Macquarie Infrastructure Corporation (NYSE: MIC) announced that it has reached agreements for the sale of each of its portfolios of operating wind and solar power generation businesses. Aggregate gross proceeds to MIC from the sales are expected to be $215 million.
Under the agreements, MIC, acting through its subsidiaries, will sell its 203MW (gross) portfolio of wind generation assets to DIF Infrastructure V, a fund managed by DIF, a global infrastructure fund management company, and its 142 MW portfolio of solar power generation assets to Goldman Sachs Renewable Power LLC. Closing of the transactions is subject to receipt of usual and customary consents for a transaction of this type.
The sales of the individual businesses comprising the wind and solar portfolios are expected to close progressively over the balance of 2019.
“With the signing of these agreements we have reached another important milestone in our efforts to streamline our portfolio and realize investments in certain smaller and non-core business,” said Christopher Frost, chief executive officer of MIC. “At the same time we have delivered an attractive risk-adjusted return to our shareholders and expect to use the proceeds from these sales to fund a portion of our investment in the growth of our remaining businesses.”
MIC announced its intention to exit its renewable power generation businesses in November of last year. In anticipation of these sales, the Company’s guidance for the generation of EBITDA of between $610 and $635 million in 2019 did not include any contribution from these businesses.
MIC’s financial advisor was Greentech Capital Advisors and its legal advisor was Winston & Strawn LLP.
About MIC
MIC owns and operates a diversified group of businesses providing basic services to customers in the United States. Its businesses consist of a bulk liquid terminals business, International-Matex Tank Terminals, an airport services business, Atlantic Aviation, and entities comprising an energy services, production and distribution segment, MIC Hawaii. For additional information, please visit the MIC website at www.macquarie.com/mic.
MIC is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of MIC do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of MIC.
