NextEra Energy Transmission, LLC, a subsidiary of NextEra Energy, Inc., has entered into definitive agreements with affiliates of Blackstone to acquire GridLiance Holdco, LP, and GridLiance GP, LLC, for approximately US$660 million, including the assumption of debt. A portion of the net proceeds from NextEra Energy's recent equity units issuance will be used to finance the transaction.
GridLiance owns approximately 700 miles of high-voltage transmission lines and related equipment with utility rates set by the Federal Energy Regulatory Commission (FERC). The company's assets span three regional transmission organizations and six states.
"GridLiance partners with electric cooperatives and public power utilities to enhance transmission system reliability and is well positioned to benefit from the substantial expected renewables growth over the coming years," said Jim Robo, chairman and CEO of NextEra Energy. "This acquisition furthers our goal of creating America's leading competitive transmission company and is consistent with our strategy of adding high-quality regulated assets to our portfolio."
The transaction requires approval from the FERC, utility commissions in Kansas, Missouri, and Oklahoma, as well as expiration or termination of the waiting period under the Hart-Scott-Rodino Act. Assuming timely regulatory approvals, the transaction is expected to close in 2021.
Wells Fargo Securities, LLC, served as financial advisor, and Pillsbury Winthrop Shaw Pittman, LLP, served as counsel to NextEra Energy Transmission.
