The investor group consists of Pegasus Capital Advisors, Kelso & Company, Resource Capital Funds and Traxys Projects. Progress Energy said that this was the final divestiture of its restructuring plan related to the non-regulated investments in Progress Ventures.
Progress Energy has stated that proceeds from the transactions will be used for general corporate purposes. The transactions are expected to close in January 2008 and are subject to customary closing provisions and adjustments.
Powell Mountain Coal Company and Dulcimer Land consist of approximately 30,000 acres of land in Lee County, Virginia and Harlan County, Kentucky. There are approximately 40 million tons of coal reserves on the property. Kanawha River Terminals operates five river terminals located on the Ohio River and its tributaries. The facilities have an annual capacity in excess of 40 million tons for transloading, blending and storage of coal and other commodities.
Bill Johnson, chairman, president and CEO of Progress Energy, said: This is the last step in a successful restructuring plan that has allowed Progress Energy to strengthen its balance sheet and reduce the overall risk profile of the company.
