(Reuters) - Private-equity firm Energy Capital Partners has hired banks to explore a sale or initial public offering of its power-generation unit Equipower Resources Corp, the Wall Street Journal reported, citing people familiar with the matter.
Equipower, which operates power plants in Connecticut, Illinois, Massachusetts, Ohio and Pennsylvania could fetch more than $1.5 billion in sale, some of the people were quoted by the Journal. (r.reuters.com/kut69v)
In case the company owners opt for an IPO, the proceeds will be used to repay debt, the paper quoted a source.
Equipower had debt of about $1.5 billion at the end of last year, according to Moody's Investors Service. (r.reuters.com/put69v)
Equipower said last October it would shut down its Brayton Point coal/oil-fired power plant in Massachusetts as of May 2017.
The company said the plant was shut due to low electricity prices resulting from a surplus of low-cost natural gas and the high cost of investment needed to meet environmental regulations and operate and maintain the aging plant.
Energy Capital Partners, Equipower Resources, Barclays and Goldman Sachs were not immediately available for comment outside regular U.S. business hours.
Reporting by Arnab Sen in Bangalore; Editing by Gopakumar Warrier