Puget Energy acquired by investor group for $7.4 billion

By Lisa Kerner

Charlotte, N.C., Feb. 6 - Puget Holdings LLC completed its $7.4 billion acquisition of Puget Energy, Inc. and its wholly owned utility subsidiary, Puget Sound Energy, Inc.

In October, Puget Holdings, a group of long-term infrastructure investors, announced it would buy Puget Energy for $30 per share.

William S. Ayer, chairman and chief executive officer of Alaska Air Group, was named chairman of the boards of directors for Puget Energy and Puget Sound Energy, replacing Stephen P. Reynolds, following the transaction's close.

Reynolds remains president and CEO of Puget Energy and Puget Sound Energy and will continue to be a member of the boards of both companies.

After both Puget Holdings and Puget Sound Energy accepted the Washington Utilities and Transportation Commission merger approval order, Standard & Poor's increased Puget Sound Energy's corporate credit rating to BBB from BBB- and its secured bond rating to A- from BBB+, according to a Puget Energy news release.

The ratings upgrade is expected to result in "meaningful savings" for customers of the Bellevue, Wash., gas and utility company "for years to come," Puget Energy said.

"At a time when most companies are only able to secure one-year bank loans, the merger also enabled Puget Sound Energy to enter into new credit facilities with five-year terms," Reynolds said in the release.

"This is on top of the $100 million in rate credits and other savings over the next decade customers will begin receiving as early as this month and the committed access to long-term, stable capital - $1 billion a year for the next five - provided by our new owners," Reynolds added.

It was previously reported that Puget Energy declared a special pro rata common stock dividend of $0.00278 per share per day, or an expected total of $0.04448 per share, in connection with the merger transaction.

The special dividend is in addition to Puget Energy's current quarterly dividend of $0.25 per share payable on Feb. 15, the company said.

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