EPCOR Power L.P. expects Frederickson acquisition to close August 1, 2006
EDMONTON, Alberta - July 31, 2006 (TSX: EP.UN) - EPCOR Power L.P. (collectively with its subsidiaries, the "Partnership") today announced that it expects to complete its acquisition from EPCOR Utilities Inc., and its wholly owned subsidiaries ("EPCOR"), of a 100 per cent interest in Frederickson Power L.P. ("FPLP") on August 1, 2006. This transaction was originally announced on April 7, 2006.
FPLP owns a 50.15 per cent interest in the Frederickson power facility, a 249 megawatt ("MW") (nominal) single unit, natural gas-fired combined cycle generating facility, with an additional duct firing capability of 20 MW, located in Pierce County, Washington State, U.S.A.
The purchase price of the acquisition was financed in part with an issuance of 2,460,000 Subscription Receipts (TSX: EP.R), for aggregate proceeds of $82,041,000 (the "Offering"). Each Subscription Receipt represents the right of the holder to receive one limited partnership unit of the Partnership upon closing of the acquisition.
The Partnership, having received required regulatory approval, expects to close the acquisition prior to market opening on August 1, 2006. Assuming the acquisition closes on August 1, the transfer register of the subscription receipts will close at 5:00 p.m. (Edmonton time) on August 1, 2006. Limited Partnership units will be issued to holders of subscription receipts through the facilities of Canadian Depository for Securities Limited and book entry customer confirmations will be entered by August 4, 2006.
Registered holders of Subscription Receipts exchanged for Limited Partnership units will be entitled to a Special Payment in the amount of $0.63 per Subscription Receipt (being the amount of the June 30, 2006 per unit cash distribution to unitholders). The Special Payment will be paid on August 4, 2006.
About EPCOR Power L.P.
Established in 1997, EPCOR Power L.P. is a limited partnership organized under the laws of the Province of Ontario. The Partnership owns and operates a portfolio of 11 power generation assets in Canada and the United States with total net generating capacity of 744 megawatts. The Partnership has the highest stability ratings of any power income fund, rated STA-1 (low) by Dominion Bond Ratings Services and SR-1 by Standard & Poor's.
FORWARD-LOOKING INFORMATION
Certain information in this news release is forward-looking and related to anticipated financial performance, events and strategies. When used in this context, words such as "will", "anticipate", "believe", "plan", "intend", "target" and "expect" or similar words suggest future outcomes. By their nature, such statements are subject to significant risks and uncertainties, which could cause the Partnership's actual results and experience to be materially different than the anticipated results. Such risks and uncertainties include, but are not limited to, the ability of the Partnership to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability and price of energy commodities, plant availability, waste heat availability and water flows, regulatory and government decisions, competitive factors in the power industry, the current economic conditions in North America and the performance of contractors and suppliers.
Readers are cautioned not to place undue reliance on forward-looking statements as actual results could differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking statements. Except as required by law, the Partnership disclaims any intention and assumes no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
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