ALLETE Revises Terms of Florida Water Sale

Dec. 23, 2002

ALLETE, Inc.'s Orlando-based utility business, Florida Water Services Corporation, has signed an amended asset sales agreement adjusting the sales price for the sale of substantially all of its assets to the Florida Water Services Authority (FWSA). The sales price has been adjusted to $456.5 million, primarily because of higher interest rates on bonds to be issued by the FWSA.

Florida Water Services anticipates receiving approximately $420 million at closing, and an additional $36.5 million three years after closing once certain contingencies have been met. In addition, Florida Water Services expects to receive up to $36 million of future customer hookup fees to be paid over the next six years. Based on these figures, total consideration for the transaction will be $492.5 million.

Cash proceeds to Florida Water Services after taxes and repayment of existing debt are expected to be approximately $180 million in 2003, and $250 million for the entire transaction. The gain on the transaction is estimated at $100 million after taxes and related costs, to be recognized over a six-year period. While the majority of the cash will be received at closing, most of the gain will be recognized as income in years following 2003 as required by accounting rules. Terms of the revised agreement call for a closing by February 14, 2003, subject to the FWSA being able to issue bonds for the purchase price and other conditions.

FWSA is a governmental entity that was established by an interlocal agreement between the Florida panhandle cities of Gulf Breeze and Milton.

ALLETE plans to include a copy of the amended asset purchase agreement in an 8-K filing with the Securities and Exchange Commission.

Source: ALLETE, Inc.

Sponsored Recommendations

Blower Package Integration

March 20, 2024
See how an integrated blower package can save you time, money, and energy, in a wastewater treatment system. With package integration, you have a completely integrated blower ...

Strut Comparison Chart

March 12, 2024
Conduit support systems are an integral part of construction infrastructure. Compare steel, aluminum and fiberglass strut support systems.

Energy Efficient System Design for WWTPs

Feb. 7, 2024
System splitting with adaptive control reduces electrical, maintenance, and initial investment costs.

Blower Isentropic Efficiency Explained

Feb. 7, 2024
Learn more about isentropic efficiency and specific performance as they relate to blowers.