Clearway Energy, Inc. through its subsidiary Clearway Energy Operating LLC, announced it has entered into a binding agreement to sell its Thermal Business to KKR for total consideration of $1.9 billion, subject to closing adjustments.
The Company’s Thermal Business, commercially known as Clearway Community Energy, consists of thermal infrastructure assets that provide steam, hot water and/or chilled water, and in some instances electricity, to commercial businesses, universities, hospitals, and governmental customers across the United States, the statement said.
“First, I want to thank my colleagues at Clearway Community Energy for their steadfast commitment to safely providing sustainable energy across their customer base while contributing to the success of the Company since our IPO in 2013,” said Christopher Sotos, Clearway Energy, Inc.’s President and Chief Executive Officer. “This divestiture will provide Clearway with an unprecedented degree of financial flexibility and will eliminate any need to issue new equity to fund our committed investments, while also providing capital to fund future growth objectives and further enhance shareholder value. Considering our sponsor’s robust development pipeline, the Company is now in one of the best positions in its history to deliver long term CAFD per share growth and economic value.”
KKR will be making the investment through its core infrastructure strategy. KKR first established its global infrastructure team and strategy in 2008 and has since been one of the most active infrastructure investors around the world, with a team of more than 50 dedicated investment professionals. The firm currently oversees approximately $28 billion in infrastructure assets and has made over 45 infrastructure investments across a range of sub-sectors and geographies.
“Clearway Community Energy is a leading platform delivering critical utility services across the U.S., and we are excited to be investing in its continued expansion, in particular through the development of renewable and carbon-neutral alternatives to help building owners achieve their sustainability goals,” said James Cunningham, Partner at KKR.
The transaction is subject to various customary closing conditions, approvals, and consents and is expected to close in the first half of 2022.
BofA Securities and TD Securities served as financial advisors to the Company and Gibson, Dunn & Crutcher LLP served as legal advisor. Morgan Stanley & Co. LLC served as financial advisor to KKR and Kirkland & Ellis LLP served as legal advisor.
HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.