Final Sale Price Disclosed For Sale Of CenterPoint Energy Services, As Acquisition By ECP Closed
ECP Rebrands CenterPoint Energy Services As Symmetry Energy Solutions
June 2, 2020 Email This Story Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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CenterPoint Energy, Inc. and Energy Capital Partners, LLC, announced that they have closed on the sale of CenterPoint Energy Services, Inc. (CES) to an affiliate of ECP.
CenterPoint Energy said that the final price for CES was $286 million in cash
"The $286 million in cash includes adjustments for the estimated working capital at closing, which was lower than previously estimated due primarily to the impacts of changes in commodity prices and impacts related to the timing of close that resulted in less working capital needs at CES. Estimated working capital at closing is subject to customary post-closing review and adjustment," CenterPoint Energy said in an 8-K
At the time the sale was first announced, CenterPoint Energy had said that the deal was expected to result in total consideration of approximately $400 million, including estimated working capital at close
In connection with the closing of the transaction, CES changed its name to Symmetry Energy Solutions, LLC, (Symmetry Energy) and entered into a structured long-term Preferred Supply agreement through which Shell Energy North America (US), L.P. will provide gas supply and collateral support, as well as receive equity warrants.
Energy Capital Partners is among a consortium of investors that owns Calpine Corporation, which owns various retail suppliers including Champion Energy
CenterPoint Energy said in an 8-K that, "The closing of the sale of CES represents the disposition of substantially all of the businesses within the Company’s and Seller’s energy services reporting unit."
Net proceeds of the sale will be used to repay a portion of outstanding CenterPoint Energy debt.