Puget Energy files application for utility approval in connection with acquisition

By Lisa Kerner

Charlotte, N.C., Dec. 17 - Puget Energy, Inc. subsidiary Puget Sound Energy and a consortium of infrastructure investors filed an application with the Washington Utilities and Transportation Commission requesting its approval in connection with the proposed acquisition of Puget Energy by the investors, which was first announced on Oct. 26.

"We're taking the necessary steps to move forward with the merger by preparing and filing the requisite applications and materials to receive regulatory approval," Puget Energy chairman, president and chief executive officer Stephen P. Reynolds said in a company news release.

The merger is expected to close in the second half of 2008.

"The results of the go-shop process have helped to confirm that partnering with the consortium comprised of committed and experienced long-term infrastructure investors will provide the best end result for our shareholders, customers, employees and the communities we serve in Western Washington," Reynolds added.

As previously reported, the consortium will acquire all of the outstanding shares of Puget Energy for $30 per share in cash, or a total of some $7.4 billion including $3.2 billion of Puget Energy redeemable securities and outstanding debt obligations.

On Dec. 3, Puget Energy completed the sale of 12.5 million shares to the consortium for some $296 million. The cash infusion will fund Puget Sound Energy's ongoing construction program and working capital needs.

In addition, the consortium agreed to secure credit facilities of at least $2.15 billion to help fund Puget Sound Energy's capital expenditure program and to support energy hedging activities.

The consortium is led by Macquarie Infrastructure Partners, the Canada Pension Plan Investment Board and British Columbia Investment Management Corp. The consortium also includes Alberta Investment Management, Macquarie-FSS Infrastructure Trust and Macquarie Group Ltd.

Puget Energy and Puget Sound Energy, a regulated utility, will continue to be based in Bellevue, Wash., with current management remaining.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.