EX-99.1 2 v460369_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

  

Press Release

 

AES Investor Contact: Ahmed Pasha 703-682-6451

AES Media Contact: Amy Ackerman 703-682-6399

AIMCo Media Contact: Dénes Németh 780-392-3857

Fir Tree Partners Media Contact: Taylor Ingraham 203-992-1230

 

AES and AIMCo Agree to Acquire sPower, the Largest Independent Solar Developer in the United States, from Fir Tree Partners

 

ARLINGTON, Va., February 24, 2017 – The AES Corporation (NYSE: AES) and Alberta Investment Management Corporation (AIMCo), on behalf of certain of its clients, have agreed to acquire FTP Power LLC (sPower), the largest independent owner, operator and developer of utility scale solar assets in the United States, from Fir Tree Partners and its minority owners, for $853 million in cash, plus the assumption of $724 million in non-recourse debt. In connection with the transaction, AES and AIMCo will each directly and independently purchase and own slightly below 50% equity interests in sPower.

 

sPower, a Fir Tree portfolio company that the firm capitalized in 2014, owns and operates utility and commercial distributed electrical generation systems across the United States. The sPower portfolio includes 1,274 MW of solar and wind projects in operation or under construction and a development pipeline of more than 10,000 MW located in the United States. The operating assets and projects under construction are under long-term Power Purchase Agreements (PPA) with an average remaining life of 21 years. The offtakers under the PPAs have an average credit rating of A1. After closing, AES’ ownership of renewable energy projects in operation and under construction will grow from 8,278 MW to 9,552 MW, including hydro, wind, solar and energy storage.

 

“We are very pleased to acquire sPower, the largest independent solar developer in the United States. sPower not only brings 1.3 GW of installed capacity with an average remaining contract life of more than 20 years, but a first class management and development team with a pipeline of more than 10 GW of projects,” said Andrés Gluski, AES President and Chief Executive Officer.

 

“AIMCo is excited to acquire an approximate 50% interest in sPower, on behalf of our clients and consistent with our investment mandate, and in partnership with AES,” stated Kevin Uebelein, Chief Executive Officer of AIMCo. “sPower is an impressive organization that has and continues to successfully develop and execute a robust renewable energy development pipeline, delivering value to all of its many stakeholders.  Our partner, AES, is a world class leader in sustainable energy and we are delighted to be working with them.”

 

“It is extremely rewarding to realize Fir Tree’s vision for sPower with this agreement between our company and AES and AIMCo,” said Jeffrey Tannenbaum, Chairman of the Board of sPower and founder of Fir Tree Partners. “sPower’s innovation and significant commercial success in just three years is testament to its outstanding management team and demonstrates that clean energy is a strong and profitable tool for driving economic growth and meaningful job creation for skilled workers. Clean energy is the future and the opportunity ahead for sPower is very large. We believe AES and AIMCo are the right partners to support the company’s continued evolution and ambitious goals for clean energy development, job creation, and greenhouse gas reductions.”

 

Ryan Creamer, Chief Executive Officer of sPower, said, “With the help of Fir Tree, we have experienced incredible growth over the last three years. We are excited to become part of the AES/AIMCo partnership and we are confident that it positions us to continue to grow, develop and maximize the platform that we have created. On behalf of the entire sPower team, I want to thank Fir Tree for its support and vision that have been so critical to our success.”

 

This transaction is expected to close by the third quarter of 2017, subject to review or approval by the Federal Energy Regulatory Commission, the Committee on Foreign Investment in the United States and the expiration or termination of any waiting period under the Hart-Scott-Rodino Act. The acquisition price is subject to customary post-signing purchase price adjustments.

 

 

 

 

AES will provide its 2017 guidance and longer-term expectations, and discuss this transaction on its fourth quarter and full year 2016 financial review call on February 27, 2017.

 

A Fact Sheet listing sPower’s operating assets and projects under construction accompanies this Press Release.

 

About AES

 

The AES Corporation (NYSE: AES) is a Fortune 200 global power company. We provide affordable, sustainable energy to 17 countries through our diverse portfolio of distribution businesses as well as thermal and renewable generation facilities. Our workforce of 21,000 people is committed to operational excellence and meeting the world’s changing power needs. Our 2015 revenues were $15 billion and we own and manage $37 billion in total assets. To learn more, please visit www.aes.com. Follow AES on Twitter @TheAESCorp.

 

About AIMCo

 

AIMCo is one of Canada’s largest and most diversified institutional investment managers with more than $95 billion of assets under management. AIMCo was established on January 1, 2008 with a mandate to provide superior long-term investment results for its clients. AIMCo operates at arms-length from the Government of Alberta and invests globally on behalf of 31 pension, endowment and government funds in the Province of Alberta. For more information on AIMCo please visit www.aimco.alberta.ca.

 

About sPower

 

Headquartered in Salt Lake City, with offices in San Francisco, Long Beach and New York City, sPower is the largest private owner of operating solar assets in the United States. sPower owns and operates utility and commercial distributed electrical generation systems across the U.S. producing in excess of 1.1 GW of power. Additionally, sPower has an in-construction and development pipeline in excess of 10 GW. For more information on sPower, please visit www.spower.com.

 

About Fir Tree Partners

 

Fir Tree, founded in 1994, is a private investment firm with approximately $10 billion of capital under management. The firm invests worldwide in public and private companies, real estate, and debt. Fir Tree manages assets on behalf of leading endowments, foundations, pension funds, and sovereign wealth funds. The firm maintains offices in New York and Miami.

 

AES Safe Harbor Disclosure

 

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding the expected timeline for completing the proposed transaction, sPower’s projects under development, the Company’s future cash flows, improvement in the Company’s credit metrics and growth of the Company’s dividend. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES’ current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as achievements of planned productivity improvements and incremental growth investments at normalized investment levels and rates of return consistent with prior experience.

 

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Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES’ filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the risks discussed under Item 1A “Risk Factors” and Item 7: Management’s Discussion & Analysis in AES’ 2015 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES’ filings to learn more about the risk factors associated with AES’ business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

Any Stockholder who desires a copy of the Company’s 2015 Annual Report on Form 10-K dated on or about February 23, 2016 with the SEC may obtain a copy (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Form 10-K may be obtained by visiting the Company’s website at www.aes.com.

 

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sPower Operating Assets

 

Business  Location  Fuel  Gross MW   Date of
Commencement
of
Commercial
Operations		  Contract
Expiration
Date		  Customer(s)
Solverde 1  US-CA  Solar - Utility   106   2016  2036  CDWR
Pioneer Wind Park  US-WY  Wind   80   2016  2036  PacifiCorp
Beacon Solar 1  US-CA  Solar - Utility   64   2017  2042  LADWP
Beacon Solar 3  US-CA  Solar - Utility   63   2017  2042  LADWP
Antelope DSR 1  US-CA  Solar - Utility   63   2016  2036  SCPPA
Latigo Wind Park  US-UT  Wind   62   2016  2036  PacifiCorp
Eden Solar  US-NC  Solar - Utility   62   2015  2030  Duke Energy Progress
Sandstone Solar  US-AZ  Solar - Utility   58   2015  2036  Salt River Project
Beacon Solar 4  US-CA  Solar - Utility   57   2016  2041  LADWP
Elevation Solar C  US-CA  Solar - Utility   51   2016  2046  City of Palo Alto
Hayworth  US-CA  Solar - Utility   33   2015  2045  City of Palo Alto
Sale-Leaseback1  US-Various  Solar - Distributed   31   2008-2014  Various  Various2
Adera Solar  US-CA  Solar - Utility   27   2015  2035  Southern California Edison
Antelope Big Sky Ranch  US-CA  Solar - Utility   26   2016  2041  SCPPA
Summer Solar SCPPA  US-CA  Solar - Utility   26   2016  2041  SCPPA
WABSRB  US-CA  Solar - Utility   26   2016  2046  City of Palo Alto
SEPV Mojave West  US-CA  Solar - Utility   25   2016  2036  Southern California Edison
WABSRA  US-CA  Solar - Utility   24   2014  2034  PG&E
Central Anelope Dry Ranch C  US-CA  Solar - Utility   23   2016  2036  Southern California Edison
Sierra Solar  US-CA  Solar - Utility   23   2015  2035  Southern California Edison
North Lancaster Ranch  US-CA  Solar - Utility   22   2016  2036  Southern California Edison
Redcrest  US-CA  Solar - Utility   21   2015  2035  Southern California Edison
Woodmere  US-CA  Solar - Utility   19   2015  2035  PG&E
Leavenworth Greenworks  US-NY  Solar - Utility   14   2016  2034  Long Island Power Authority
Western Antelope Dry Ranch (LCE)  US-CA  Solar - Utility   13   2016  2036  LCE
SEPV Palmdale East  US-CA  Solar - Utility   12   2015  2035  Southern California Edison
Victor Dry Farm Ranch  US-CA  Solar - Utility   11   2015  2035  Southern California Edison

 

 

 

  

American Solar Greenworks  US-CA  Solar - Utility   9   2016  2036  Southern California Edison
Victor Mesa Linda B2-E2 (Seneca)  US-CA  Solar - Utility   8   2014  2034  Southern California Edison
Summer Solar A2-D2  US-CA  Solar - Utility   8   2014  2034  Southern California Edison
Sutter Greenworks  US-NY  Solar - Utility   7   2015  2035  Long Island Power Authority
Citizen B Solar  US-CA  Solar - Utility   7   2015  2035  Southern California Edison
Lancaster Little Rock C  US-CA  Solar - Utility   7   2015  2035  Southern California Edison
Biscoe  US-NC  Solar - Utility   7   2014  2029  Duke Energy Progress
Selma  US-NC  Solar - Utility   7   2014  2029  Duke Energy Progress
Turkey Branch  US-NC  Solar - Utility   7   2014  2029  Duke Energy Progress
Nick  US-NC  Solar - Utility   7   2014  2029  Duke Energy Carolinas
Antelope DSR 2  US-CA  Solar - Utility   6   2016  2036  SCPPA
Lancaster Dry Farm Ranch  US-CA  Solar - Utility   6   2014  2034  Southern California Edison
Expressway Solar A & B  US-CA  Solar - Utility   5   2014  2034  Southern California Edison
Fairmont  US-NC  Solar - Utility   5   2013  2028  Duke Energy Progress
AE Israel  US-NC  Solar - Utility   5   2014  2029  Duke Energy Progress
Battleground  US-NC  Solar - Utility   4   2013  2028  Duke Energy Carolinas
Rodeo Solar C2 & D2  US-CA  Solar - Utility   4   2014  2034  Southern California Edison
SEPV 18  US-CA  Solar - Utility   3   2016  2036  Southern California Edison
Southbridge  US-MA  Solar - Distributed   3   2016  2036  Town of Southbridge
Spring Hill Road  US-MA  Solar - Distributed   3   2015  2035  Town of Southbridge
Kenansville  US-NC  Solar - Utility   3   2013  2028  Duke Energy Progress
Tom Taylor  US-NC  Solar - Utility   3   2014  2029  Duke Energy Progress

 

 

 

 

Warsaw I  US-NC  Solar - Utility   3   2013  2028  Duke Energy Progress
Warsaw II  US-NC  Solar - Utility   3   2013  2028  Duke Energy Progress
Innovative Solar 14  US-NC  Solar - Utility   3   2014  2029  Duke Energy Carolinas
Beulaville  US-NC  Solar - Utility   3   2013  2028  Duke Energy Progress
Wallace  US-NC  Solar - Utility   3   2013  2028  Duke Energy Progress
Innovative Solar 15  US-NC  Solar - Utility   3   2014  2029  Duke Energy Carolinas
Ellerbe  US-NC  Solar - Utility   2   2013  2028  Duke Energy Progress
Expressway Solar C2  US-CA  Solar - Utility   2   2014  2034  Southern California Edison
Sterlington Greenworks  US-NY  Solar - Utility   2   2015  2035  Long Island Power Authority
South Barre Road  US-MA  Solar - Distributed   1   2015  2035  Town of Southbridge
North Brookfield  US-MA  Solar - Distributed   1   2015  2035  City of North Adams
Westminster Country Club  US-MA  Solar - Distributed   1   2015  2035  City of North Adams
TOTAL         1,184          

 

1 Includes 77 projects.

2 24 government, municipal, commercial and industrial offtakers.

 

 

 

 

sPower Projects Under Construction        

 

Business  Location  Fuel  Gross MW   Date of
Commencement
of
Commercial
Operations		  Contract
Expiration
Date		  Customer(s)
Bayshore         91          
Bayshore A  US-CA  Solar - Utility   25   2017  2037  PG&E
Bayshore B  US-CA  Solar - Utility   25   2017  2037  PG&E
Bayshore C  US-CA  Solar - Utility   25   2017  2037  PG&E
Aspiration Solar G  US-CA  Solar - Utility   12   2017  2037  PG&E
Lancaster WAD B  US-CA  Solar - Utility   4   2017  2037  Southern California Edison
TOTAL UNDER CONSTRUCTION         91