Daily News: August 29, 2014

Scotiabank, RBC Finance BBIP’s Utility Buy

BBIP announced the purchase of 100% of Upper Peninsula Power’s (UPPCO) stock from Integrys Energy Group. Scotiabank and RBC Capital Markets are providing structuring/placement advice and financing for the transaction. Rothschild is financial advisor for the transaction, and Baker & McKenzie is legal advisors.

The acquisition is consistent with BBIP Investors’ strategy to invest in the key essential infrastructure sectors of energy, transportation and utilities in North America and Western Europe. The transaction was announced at the signing of definitive documentation in January of 2014, and was approved by the Michigan Public Service Commission on June 6, 2014, and by the Federal Energy Regulatory Commission on August 20, 2014.

Under the terms of the agreement, BBIP Investors are acquiring UPPCO’s electricity distribution and generation operations, excluding its American Transmission Company holdings. To help ensure a smooth and seamless transition, Integrys will provide certain transition services to UPPCO.

UPPCO is a regulated electric utility business that provides distribution and power supply services to approximately 52,000 residential, commercial and industrial customers in the Upper Peninsula of Michigan. UPPCO was acquired by Integrys in 1998.

BBIP Managing Partner Rob Gregor said, “The completion of the acquisition of UPPCO is an important landmark for BBIP, representing BBIP Investors’ entrance into the North American utility markets. For UPPCO, its customers, and stakeholders, it will be business as usual. The company’s headquarters will be relocated to Michigan and, on behalf of our investors, we are committed to maintaining safe and reliable customer service, and investing in the company and the communities UPPCO serves.”

Jeff Neil, head of BBIP’s North American unit, said, “We are excited by this important acquisition and underline our investors’ commitment to providing UPPCO with the capital necessary to maintain and improve its existing energy delivery infrastructure. To achieve the objective of providing safe, reliable and affordable power in the Upper Peninsula and the strategy of network renewal and enhancement, a senior management team has been established. This senior team will be based in the Upper Peninsula and brings substantial experience in managing utilities in the Upper Midwest as well as substantial experience in the power generation sector.”

BBIP an infrastructure equity investment advisory firm with offices in London and New York, focusing on investments in utilities, energy and transport infrastructure in the U.S., Canada and Europe. BBIP is sponsored by Balfour Beatty plc (Balfour Beatty), a global infrastructure group with capabilities in construction services, support services and infrastructure investments.

Integrys Energy Group is a diversified energy holding company with regulated natural gas and electric utility operations.