The company claims that the aggregate purchase price to be paid is approximately $80m, including working capital at closing, and is expected to be financed from existing bank credit facilities. The acquisition is expected to close in the first quarter of 2010, subject to usual closing conditions, including the approval of the US Federal Energy Regulatory Commission (FERC) and the New York State Department of Public Service.
The Northbrook facility is a hydroelectric generating facility located on the Black river in upstate New York, just south of Lake Ontario. Northbrook commenced commercial operations in 1986 and operates as a run-of-river facility. The project has a nominal installed capacity of 33MW and operates under a 50-year license issued by the FERC, which expires in 2032.
The Northbrook facility is operated by a third party contract operator. In the past, power produced by the facility has been sold under two-year contracts, however Fort Chicago intends to explore opportunities for a longer-term sales arrangement.
