NextEra Energy Partners To Buy Meade Pipeline In $1.37B Deal

Nextera Energy Partners LP NEP said Monday it has reached an agreement to buy Meade Pipeline Co LLC for $1.37 billion, which includes an initial consideration of $1.28 billion, subject to working capital.

The deal calls for future capital contributions of roughly $90 million through 2022 tied to an expansion opportunity at the existing pipeline, NextEra said. 

The funding for the expansion is expected to be financed with a total of $820 million of project debt, including a $60-million draw that is expected at the closing of the transaction and which is in addition to the $760 million in project debt.

"We are pleased to have reached a definitive agreement to acquire Meade Pipeline and its interests in the Central Penn Line, which is backed by an attractive fixed-lease payment with a high-credit quality customer, and further expand NextEra Energy Partners' investment in long-term contracted natural gas pipelines, helping mitigate any potential resource volatility in the portfolio," NextEra CEO Jim Robo said in a statement.

"Meade Pipeline is a very attractive acquisition for NextEra Energy Partners, and is expected to yield a double-digit return to NextEra Energy Partners' limited partner unitholders and generate a cash available for distribution yield of roughly 14%." 

NextEra Energy Partners shares closed Friday's session higher by 0.58% at $52.40. The stock has a 52-week high of $53.90 and a 52-week low of $39.35.

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