OMERS Sells Midland Cogeneration Venture to Manulife and Capital Power Corporation

Posted on 07/13/2022

Capital Power Corporation (TSX: CPX) partnered with Manulife Investment Management on behalf of the Manulife Infrastructure Fund II and its affiliates to acquire 100% of the interests in MCV Holding Company, which owns Midland Cogeneration Venture (Midland Cogen). The 1,633 megawatt (MW) natural gas combined-cycle cogeneration facility is being acquired from OMERS Infrastructure Management Inc. and its co-investors (OMERS) for a total of US$ 894 million, including the assumption of US$ 521 million of project level debt. The transaction is expected to close in the third quarter of 2022, subject to regulatory approvals and other customary closing conditions. Manulife Investment Management is the global brand for the global wealth and asset management segment of Manulife Financial Corporation.

Under the 50/50 joint venture with Manulife Investment Management, Capital Power and its joint venture partner will each contribute approximately US$186 million subject to working capital and other closing adjustments. Capital Power will finance the transaction using cash on hand and its credit facilities and will not need to access the equity markets to finance the transaction. Capital Power will be responsible for operations and maintenance and asset management for which it will receive an annual management fee.

Located in Michigan, it is the largest gas-fired cogeneration facility in the United States.

On October 5, 2012, OMERS Infrastructure acquired utilities company Midland Cogeneration Venture LP from EQT Infrastructure and Fortistar. EQT Infrastructure and Fortistar acquired 70% and 30% respectively in MCV in May of 2009.

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