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BRIEF-Altagas says to buy US natural gas-fired generation facilities for $642 mln

Published 2015-09-21, 05:09 p/m
© Reuters.  BRIEF-Altagas says to buy US natural gas-fired generation facilities for $642 mln
ALA
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Sept 21 (Reuters) - Altagas Ltd ALA.TO :
* Announces acquisition of US natural gas-fired generation facilities for
US$642 million, dividend increase and $300 million common share offering
* Says acquisition is expected to add approximately $95 million in incremental
contracted EBITDA per year
* Says Altagas also announced today an increase of $0.005 per share in its
common share dividend to $0.165 on a monthly basis
* Says Altagas expects to maintain its conservative targeted payout ratio of 40
- 50 percent of funds from operations
* Says deal to be modestly accretive to earnings per share in 2016, the first
full year of ownership
* Says acquisition will be financed consistent with altagas' current capital
structure
* Deal to be over 5 percent accretive to cash flow per share
* Says underwriters have agreed to purchase from Altagas and sell to the public
8.8 million common shares at $34.25 per common share
* Says offering will be used, in part, to fund the acquisition as well as to
reduce indebtedness
* Deal will be funded by portion of proceeds of offering,co's existing credit
facilities,future debt,preferred share financings
* Co and units entered into agreement with highstar capital IV, l.p. and its
affiliates to acquire gwf energy holdings llc

* Source text for Eikon ID:nCCN1051nj

* Further company coverage ALA.TO

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