Macquarie Infrastructure Company (NYSE:MIC) announced that it has completed the previously disclosed sale of its district energy business, Thermal Chicago, to an entity managed by Brookfield Infrastructure Group for $270 million. The Company disclosed in the first quarter of 2014 that it had entered into an agreement to sell the business.
MIC held a 50.01% controlling interest in Thermal Chicago. Proceeds of the sale, after repayment of debt, will be split between MIC and its co-investor in the business, a unit of the John Hancock Life Insurance Company (U.S.A.). MIC expects to redeploy its approximately $60 million of net proceeds into growth projects across its other businesses.
“We’re pleased with the outcome of this transaction,” said James Hooke, Chief Executive Officer of MIC. “The Thermal Chicago investment has been a good one for MIC and generated an internal rate of return of more than 20% over the period of our ownership. We believe we can deploy the capital generated from the sale into growth projects across our businesses at attractive rates of return.”
The district energy business comprises operations in downtown Chicago providing cooling services to approximately 100 high-rise buildings and operations in Las Vegas providing cooling, heating and back-up power generation to a resort hotel, shopping center and condominium complex.Macquarie Capital acted as Exclusive Financial Advisor to MIC and John Hancock Life Insurance Company (U.S.A.) on the sale. About Macquarie Infrastructure Company Macquarie Infrastructure Company owns, operates and invests in a diversified group of infrastructure businesses providing basic services to customers in the United States. Its businesses consist of a bulk liquid terminals business, International-Matex Tank Terminals, an airport services business, Atlantic Aviation, a gas processing and distribution business, Hawaii Gas, and several entities comprising a Contracted Power and Energy segment. MIC is managed by a wholly-owned subsidiary of the Macquarie Group. For additional information, please visit the Macquarie Infrastructure Company website at www.macquarie.com/mic. MIC is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of MIC do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of MIC.
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