Retail Supplier Announces Sale of Solar Unit

Just Energy Group, Inc announced that it has entered into an agreement to sell the shares of Hudson Energy Solar Corp., its commercial solar development business, "to a leading global energy company."

Just Energy did not identify the buyer.

The purchase price to be paid will allow the assumption or repayment by the purchaser of approximately US$33 million in outstanding debt plus the payment of approximately US$23 million cash at closing.

After deducting certain transaction costs, the net proceeds will be used for general corporate purposes, including reducing the balance on Just Energy's revolving credit facility.

The final sales price and net proceeds may be subject to certain adjustments including for working capital balances as well as potential earn-out payments.

Closing is expected on or around September 30, 2014. The sale is contingent upon consents of various lenders.

Co-CEO Deb Merril stated: "When Just Energy set out to identify non-core assets that could be sold to reduce debt, the Hudson Solar division was one of the assets identified. This sale will result in a reduction in our overall debt level while allowing us to continue to focus on our core energy business. The sale of these commercial solar installations does not alter the Company's interest in residential solar as a possible growth driver for the future."