Summary
Exelon Corporation, through its subsidiary ExGen Renewables Holdings, LLC, has entered into a Purchase Agreement with John Hancock Life Insurance Company (U.S.A.) to sell a 49% membership interest in ExGen Renewables Partners, LLC. This entity owns and operates a significant portfolio of approximately 1,296 megawatts of wind and solar electric generating facilities across 13 states. This transaction, valued at $400 million before adjustments, represents a strategic move to monetize a portion of Exelon's renewable assets, with proceeds intended for debt reduction and general corporate purposes. Despite the sale of a majority stake, Exelon Generation will retain management control as the managing member of Partners. This sale is not expected to alter Exelon Generation's dedication to clean energy or its existing renewable business operations. The transaction is anticipated to close in the late second or early third quarter of 2017, subject to regulatory approvals.
Key Highlights
- 1Exelon is selling a 49% stake in its renewable energy subsidiary, ExGen Renewables Partners, LLC, to John Hancock for $400 million (subject to adjustments).
- 2The sold stake represents approximately 1,296 megawatts of operating wind and solar electric generating facilities.
- 3This portfolio constitutes about 34.9% of Exelon Generation's renewable assets and 4.0% of its total generation assets.
- 4Proceeds from the sale will be used to pay down debt and for general corporate purposes, indicating a focus on strengthening the balance sheet.
- 5Exelon Generation will retain control as the managing member of ExGen Renewables Partners, ensuring day-to-day management.
- 6The transaction is expected to close in late Q2 or early Q3 2017, pending regulatory approvals.
- 7Partners will have a right of first offer to purchase future renewable projects from Exelon Generation before they are offered to third parties.