John Hancock Life to buy USD-400m stake in Exelon renewables portfolio
Wind farm in USA. Author: Brian Jeffery Beggerly. License: Creative Commons. Attribution-2.0 Generic
A subsidiary of US energy major Exelon Corp (NYSE:EXC) has agreed to sell a 49% stake in ExGen Renewables Partners LLC to John Hancock Life Insurance Company (U.S.A.) for USD 400 million (EUR 374m).
ExGen Renewables Partners owns and operates about 1,296 MW of installed wind and solar power generating capacity spread across 30 different plants in 13 states.
The minority stake in this business will be acquired from ExGen Renewables Holdings LLC, a firm that is fully-owned by Exelon Generation Company LLC, which will continue to have day-to-day control and management over the above-mentioned wind and solar portfolio. Exelon Generation noted that the proceeds from the sale will be used to pay down debt and for general corporate purposes.
The transaction is pending clearance from the Federal Energy Regulatory Commission (FERC) and the Public Utility Commission of Texas, and is expected to close late in the second quarter or early in the third quarter of 2017.
Upon completion, ExGen Renewables Partners will have a right of first offer to purchase future renewable energy projects from Exelon Generation before the latter could sell them to unaffiliated third parties, according to a regulatory filing.
ExGen Renewables Partners' current portfolio represents roughly 34.9% of Exelon Generation’s renewable generation assets and 4% of its total generation assets.