Summary
Exelon Corporation announced on June 27, 2002, that its subsidiary, Exelon Generation Company, LLC, has agreed to acquire Sithe New England Holdings, LLC. This transaction involves a $543 million note and the assumption of approximately $1.15 billion in project debt. The acquisition is structured to allow for potential future restructuring of the original Sithe transaction, providing Exelon with flexibility and enabling the acquisition of strategically aligned assets without additional risk. The company anticipates that this deal will not impact its 2002 earnings guidance.
Key Highlights
- 1Exelon Generation to purchase Sithe New England Holdings for $543 million note and assumption of $1.15 billion in project debt.
- 2Transaction includes potential for further restructuring to acquire select Sithe assets, reducing debt and streamlining integration.
- 3Acquisition is expected to allow Exelon to integrate Sithe assets more quickly and achieve cost synergies.
- 4The deal is structured to be tax-efficient.
- 5Sithe New England Holdings comprises fossil-fueled generating facilities in Massachusetts and Maine with a total capacity of 4,471 megawatts (2,050 MW operating, 2,421 MW under construction).
- 6FERC and other required approvals are targeted by October 31, 2002, with a potential closing in November 2002.
- 7The acquisition is not expected to negatively impact Exelon's 2002 earnings guidance.