Capital Power enters agreement with JERA and Toyota to acquire Goreway Power Station Holdings Inc.

Capital Power Corporation has announced that it has entered into an agreement to acquire Goreway Power Station Holdings Inc., which owns the Goreway Power Station, an 875 megawatt natural gas combined cycle generation facility. Goreway Power Station Holdings Inc. is jointly owned by JERA Co. Inc., and Toyota Tsusho Corporation. The purchase price is CAD387 million (US$288.5 million) in total cash consideration, subject to working capital and other closing adjustments, and the assumption of CAD590 million (US$440 million) of project level debt.

Capital Power expects to finance the acquisition using a combination of debt and equity. The company has entered into an agreement with a syndicate of underwriters co-led by RBC Capital Markets and TD Securities.

Under the Purchase and Sale Agreement, Capital Power is acquiring 100 per cent of the ownership interests in Goreway Power Station Holdings Inc. The acquisition is expected to close in the second quarter of 2019, subject to regulatory approvals and satisfaction of other customary closing conditions.