Puget Energy shareholders say 'yes' to $7.4 billion acquisition by investor group

By Lisa Kerner

Charlotte, N.C., April 16 - The acquisition of Puget Energy, Inc. by a consortium of institutional investors is one step closer to completion after Puget Energy shareholders approved the deal at a special meeting on Wednesday.

The consortium includes Macquarie Infrastructure Partners, the Canada Pension Plan Investment Board, British Columbia Investment Management Corp., Alberta Investment Management, Macquarie-FSS Infrastructure Trust and Macquarie Capital, it was previously reported.

Puget Energy agreed to be acquired for $30.00 per share in cash, or a total of $7.4 billion, including $3.2 billion of Puget Energy redeemable securities and outstanding debt, a prior news release said.

The merger remains subject to various state and federal regulatory approvals, including from the Washington Utilities and Transportation Commission and the Federal Energy Regulatory Commission, but is on track to close in the second quarter, according to a form 8-K filing with the Securities and Exchange Commission.

Puget Energy is the parent company of Puget Sound Energy (PSE).

"The approval is a critical milestone toward allowing us to obtain ready access to capital that will enable PSE to build on our 135-year-old legacy as a leading, locally-managed utility and help secure the future energy supply and delivery infrastructure to meet the growing energy needs of our customers," chairman, president and chief executive officer of Puget Energy and PSE Stephen P. Reynolds said in the release.

Puget Energy had announced that the consortium committed to an initial investment of $300 million via a separate private placement of 12.5 million shares of newly issued Puget Energy common stock priced at $23.67 per share. The proceeds will be used for the company's ongoing construction program and working capital.

In addition, the consortium said it agreed to secure credit facilities of at least $2.15 billion to help fund PSE's capital expenditures and to support energy hedging activities.

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

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