Business & Finance
Business and Finance
Business and Finance
Thu, January 26, 2012
Wed, January 25, 2012 Maxim Power Corp. Announces Sale of the Alberta Power Project
January 25, 2012 21:01 ET
Maxim Power Corp. Announces Sale of the Alberta Power Project
CALGARY, ALBERTA--(Marketwire - Jan. 25, 2012) - Maxim Power Corp. ("MAXIM" or the "Corporation") (TSX:MXG) announced today that it has agreed to sell its 26 MW Alberta Power Project facilities for $12.95 million to AltaGas Pipeline Partnership ("AltaGas"). The Alberta Power Project consists of four separate facilities in southern Alberta: Taber, Burdette, Coaldale and Fort MacLeod. For the past seven years, the power generated from these facilities has been sold to an affiliate of AltaGas under a long term tolling agreement and the facilities have been operated by AltaGas. The transaction is subject to customary closing conditions.
MAXIM's historic contribution to Adjusted EBITDA(1) from the tolling agreement is approximately $1.7 million annually. The sale is accretive to MAXIM shareholders, resulting in a multiple of enterprise value to Adjusted EBITDA of 7.6 times. MAXIM will utilize the proceeds from the sale of these assets to advance its development projects in Alberta: Deerland, Milner Expansion, and Mine 14.
About MAXIM
Based in Calgary, Alberta, MAXIM is an independent power producer, which acquires or develops, owns and operates innovative and environmentally responsible power projects. MAXIM currently owns and operates 41 power plants in western Canada, United States and France, having 789 MW of electric and 117 MW of thermal net generating capacity. MAXIM trades on the TSX under the symbol "MXG". For more information about MAXIM, visit our website at [ www.maximpowercorp.com ].
(1) Adjusted EBITDA is a non-GAAP financial measure that is provided to assist management and investors in determining the Corporation's approximate operating cash flows before interest, income taxes, depreciation and amortization. Adjusted EBITDA does not have any standardized meaning prescribed by Canadian GAAP and may not be comparable to similar measures presented by other companies. Refer to Non-GAAP measures in MAXIM's MD&A for reconciliations between non-GAAP financial measures and comparable measures calculated in accordance with Canadian GAAP.
Statements in this release which describe MAXIM's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of MAXIM to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. MAXIM may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions and will update such forward looking statements as required pursuant to applicable securities laws.
