Owner of Merchant Generation in Northeast Markets Sells Plants to Rockland Capital Affiliate

Maxim Power Corp. announced this morning that it has entered into an agreement to sell 100% of its ownership interest in Maxim Power (USA), Inc. to Patriot Power Holdings, LLC, an affiliate of Rockland Capital, for US$112 million including the assumption of US$22 million of debt, "resulting in sales proceeds of US$90 million," the company said.

Maxim Power USA (MUSA) is Maxim's wholly-owned subsidiary that owns and operates Maxim's five natural gas-fired electric generation facilities in the United States. These facilities have an aggregate generating capacity of 446 megawatts and are located in New Jersey, Connecticut, Rhode Island, Massachusetts and Montana.

The sale of Maxim Power USA (MUSA) is structured as a lockbox structure under which Patriot will bear the risk and receive the rewards of economic ownership of MUSA from April 1, 2013 onward. MUSA sale proceeds will be used to repay bank operating lines and cash collateralize letters of credit leaving significant cash for strategic corporate purposes, Maxim said.

Credit Suisse Securities (USA) LLC was retained as Maxim's exclusive financial advisor for this transaction.