The transaction values the company at $1.3 billion and among other things will provide Complete Energy with access to the public capital markets.
Under the terms of the transaction agreements, GSCAC is expected to issue approximately $440 million of new equity to Complete Energy’s current owners and to other holders of debt and equity of Complete Energy subsidiaries, assume approximately $627 million of net project-level debt, and retire other debt and pay transaction expenses of approximately $183 million, and a GSCAC subsidiary will also issue a $50 million mezzanine note.
The terms also provide for the issuance of five million additional GSCAC shares to the current owners and stakeholders of Complete Energy and its subsidiaries if GSCAC’s stock price reaches $14.50, and five million additional shares if GSCAC’s stock price reaches $15.50 per share within five years; Complete Energy management will receive approximately 36% of these contingent shares.
Hugh Tarpley, co-founder of Complete Energy who will continue to lead the company as CEO, said: This is an exciting time to invest in the power industry. We expect strong growth in demand for electricity in the US, combined with the lack of significant investment in generation in recent years, to create opportunities for increased value.
