MIC enters sale agreement for 644 MW Bayonne Energy Center power generation facility

Macquarie Infrastructure Corporation has entered an agreement with North Haven Infrastructure Partners II Bayonne Holdings for the sale of its 644 MW Bayonne Energy Center power generation facility located in New Jersey, USA. The agreement values around $656.5 million in cash and $243.5 million in assumed debt. 

MIC acquired the facility in 2015 and operates the business on land owned by its International-Matex Tank Terminals (IMTT) business. With the deal, MIC anticipates using part of the net proceeds of approximately $650 million, after transaction fees and expenses, to reduce debt including $150 million outstanding on the revolving credit facility at the Company’s IMTT business. MIC expects its ratio of net debt to EBITDA to be less than 4.5 times at year end 2018. Other proceeds will fund a portion of MIC’s planned growth capital deployments. The MIC Board will consider options for returning any excess capital to shareholders.

The deal is expected to close by the fourth quarter of 2018, subjectk to receipt of customary regulatory and other approvals. MIC was advised on the sale of BEC by Guggenheim Securities.