LS Power Announces Agreement To Purchase Six U.S. Gas Plants
LS Power Group (“LS Power”) announced today that it has entered into a definitive purchase and sale agreement with Mirant Corporation for the purchase of six U.S. natural gas-fired power plants. The U.S. plants being purchased are the following: Zeeland (903 MW), West Georgia (613 MW), Shady Hills (469 MW), Sugar Creek (561 MW), Bosque (546 MW) and Apex (527 MW), constituting a total of 3,619 MW. The transaction is expected to close by the second quarter of 2007 after the satisfaction of certain customary conditions to closing.
“Because these assets are generally located in markets that have seen limited deregulation, this acquisition plays well into one of LS Power’s key strengths – working directly with utilities and load-serving entities to help them satisfy their power needs,” said Mike Segal, Chairman and Chief Executive Officer of LS Power.
The assets being acquired by LS Power Equity Partners, a member of LS Power Group, from Mirant are not party to the previously announced combination of certain assets with Dynegy Inc. After the transaction with Dynegy closes, LS Power will continue to own and operate the plants being purchased from Mirant.
LS Power Equity Partners was advised by Barclays Capital, as financial advisor, and Latham & Watkins, as legal counsel. Mirant Corporation was advised in the transaction by JPMorgan, as financial advisor, and King & Spalding, as legal counsel.