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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.

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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.

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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

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