Puget Holdings, a group of long-term infrastructure investors, has announced the completion of its USD7.4bn acquisition of Puget Energy and its wholly-owned utility subsidiary, Puget So
Puget Holdings, a group of long-term infrastructure investors, has announced the completion of its USD7.4bn acquisition of Puget Energy and its wholly-owned utility subsidiary, Puget Sound Energy.
It has acquired all of the issued and outstanding common shares of Puget Energy for USD30 a share.
Stephen P. Reynolds, president and chief executive of Puget Energy and PSE, says the deal is already benefiting the utility’s electricity and gas customers.
‘During this time of economic instability, PSE has been able to improve its credit rating and secure long-term credit facilities to improve and expand our energy delivery system, providing local jobs and meeting local needs,’ he says.
‘At a time when most companies are only able to secure one-year bank loans, the merger also enabled PSE to enter into new credit facilities with five-year terms. This is on top of the USD100m in rate credits and other savings over the next decade customers will begin receiving as early as this month and the committed access to long-term, stable capital – USD1bn a year for the next five years – provided by our new owners.’
William S. Ayer, chairman and chief executive of Alaska Air Group, has become the chairman of the boards of directors for Puget Energy and PSE.
Reynolds, who has relinquished his three-year title as chairman, remains as PSE president and chief executive, continuing to serve on the Puget Energy and PSE boards.
The PSE board also includes Herbert B. Simon, a member of Simon Johnson LLC, a real estate and venture capital investment company in Tacoma.
The transaction will enable PSE to continue to make investments in renewable resources to meet evolving green energy requirements and investments in its distribution system for natural gas and electricity customers to improve security and reliability.
The transaction also includes a USD5m contribution to the Puget Sound Energy Foundation to support local community services and programmes.
