– Leading Thermal Infrastructure Assets Significantly Increases Cash
Available for Distribution –
PRINCETON, N.J.--(BUSINESS WIRE)--Dec. 3, 2013--
NRG Yield, Inc. (NYSE:NYLD), in its first third-party acquisition, has
entered into an agreement to acquire the assets of privately held Energy
Systems Company (ESC) of Omaha, Neb., an award-winning supplier of
district energy, for $120 million in cash.
NRG Yield intends to fund the purchase price using cash on hand and
expects the acquisition to increase Cash Available for Distribution by
approximately $8 million in 2014. The assets will be acquired debt-free.
“The acquisition of ESC demonstrates NRG Yield's ability to successfully
compete for attractive contracted energy assets available from third
parties,” said David Crane, NRG Yield’s Chairman and Chief Executive
Officer. “In addition to contributing to our objective of sustainable
and visible dividend growth for our investors, ESC provides us another
important opportunity to supply the energy needs of business and other
institutional customers directly and in a manner that is not entirely
grid dependent.”
ESC currently serves nearly 14 million square feet of data center,
commercial, educational, hospital, cultural and governmental space in
Omaha with a weighted average remaining life of customer contracts over
11 years. The Omaha system to be acquired by NRG Yield is known as one
of the premier assets in the U.S. district energy industry and has been
recognized as a “System of the Year” by the International District
Energy Association (IDEA) – one of only 15 such systems (out of more
than 700 in the U.S. alone) that has received this award.
"As just the second owner in ESC’s 45-year history, we have long been
committed to providing reliable district energy service to our many
customers in downtown Omaha," says Todd Johnson, ESC's Chairman and CEO.
"So it was important to us that the new owner be a stable,
well-respected company like NRG that would honor that tradition of
operational excellence. We are confident that it is an exceptional fit
for both parties."
Investment Highlights:
-
Immediately accretive to 2014 Cash Flow Available for Distribution per
share by approximately 8%
-
Consistent with NRG Yield strategy of acquiring long-term contracted
assets that favorably complement its existing portfolio and offer
long-term growth opportunities
-
Unique opportunity to achieve geographic diversification and grow
thermal infrastructure platform
-
Demonstrates NRG Yield ability to execute on its growth strategy
through third-party acquisitions
NRG Yield expects the transaction to close by the end of the year.
About NRG Yield
NRG Yield owns a diversified portfolio of contracted renewable and
conventional generation and thermal infrastructure assets in the U.S.,
including fossil fuel, solar and wind power generation facilities that
provide the capacity to support more than one million American homes and
businesses. Our thermal infrastructure assets provide steam, hot water
and/or chilled water, and in some instances electricity, to commercial
businesses, universities, hospitals and governmental units in ten
locations. NRG Yield is traded on the New York Stock Exchange under the
symbol NYLD. Visit nrgyield.com for more information.
Safe Harbor Disclosure
This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Such forward-looking statements are
subject to certain risks, uncertainties and assumptions and include our
Adjusted EBITDA, cash available for distribution, expected earnings,
future growth and financial performance, and typically can be identified
by the use of words such as “expect,” “estimate,” “anticipate,”
“forecast,” “plan,” “believe” and similar terms. Although NRG Yield
believes that its expectations are reasonable, it can give no assurance
that these expectations will prove to have been correct, and actual
results may vary materially. Factors that could cause actual results to
differ materially from those contemplated above include, among others,
general economic conditions, hazards customary in the power industry,
weather conditions, competition in wholesale power markets, the
volatility of energy and fuel prices, failure of customers to perform
under contracts, changes in the wholesale power markets, changes in
government regulation of markets and of environmental emissions, the
condition of capital markets generally, our ability to access capital
markets, unanticipated outages at our generation facilities, adverse
results in current and future litigation, failure to identify or
successfully implement acquisitions (including receipt of third party
consents and regulatory approvals), our ability to enter into new
contracts as existing contracts expire, our ability to obtain
anticipated Section 1603 Cash Grants and our ability to maintain and
grow our quarterly dividends.
NRG Yield undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. The foregoing review of factors that could
cause NRG Yield’s actual results to differ materially from those
contemplated in the forward-looking statements included in this news
release should be considered in connection with information regarding
risks and uncertainties that may affect NRG Yield’s future results
included in NRG Yield’s filings with the Securities and Exchange
Commission at www.sec.gov.
In addition, NRG Yield makes available free of charge at www.nrgyield.com,
copies of materials it files with, or furnish to, the SEC.
Source: NRG Yield, Inc.
NRG Yield, Inc.
Media:
Karen Cleeve, 609-524-4608
David
Gaier, 609-524-4529
or
Investors:
Chad Plotkin,
609-524-4526
Dan Keyes, 609-524-4527
