Skip to main content

The Globe and Mail

Capital Power buys third New England asset

Capital Power Corp. can't help itself from buying. Just a few weeks after snatching up two New England natural gas-fired power generators, the company is back at it again.

The company has struck a deal to buy Bridgeport Energy LLC, which owns a power generation plant in Connecticut, for $355-million (U.S.). At the time of its last New England deal, Capital Power said that its acquisition price was less than half the cost of building a new plant in New England, according to BMO research.

To finance the deal Capital Power launched a $200-million bought deal at $24.90 a share, a 3 per cent discount to where the stock last traded. The offering follows the sale of $125-million of rate reset preferred shares in December and a $200-million secondary offering of common shares from EPCOR just a day later. The stock is up about 7 per cent from the time of those offerings.

Story continues below advertisement

In February Capital Power paid $315-million (U.S.) for two natural gas-fired power generation plants in Rhode Island and Maine. Combined with the latest purchase, the company now owns $670-million of assets in the region.

TD Securities and CIBC co-led the offering.

Report an error Licensing Options
About the Author
Reporter and Streetwise columnist

Tim Kiladze is a business reporter with The Globe and Mail. Before crossing over to journalism, he worked in equity capital markets at National Bank Financial and in fixed-income sales and trading at RBC Dominion Securities. Tim graduated from Columbia University's Graduate School of Journalism and also earned a Bachelor in Commerce in finance from McGill University. More

Comments are closed

We have closed comments on this story for legal reasons. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.