BBIP approached Integrys about the sale in early 2013. After lengthy discussions, it became clear that an agreement might be reached that was in the best interest of both parties.Terms of the Agreement Under the terms of the agreement, the purchase price is approximately $298.8 million (subject to post-closing adjustments, which will include changes to working capital and reimbursement for 2014 capital expenditures made by UPPCO prior to the close) for UPPCO’s electricity distribution operations, excluding its American Transmission Company holdings. To help ensure a smooth and seamless transition, Integrys will provide certain services to BBIP under a transition services agreement. The transaction requires state and federal regulatory approvals, as well as certain other customary conditions and approvals, and is expected to close once these conditions are met. As a result of the anticipated closing of this transaction and receiving after-tax proceeds of approximately $220 million by year-end 2014, Integrys Energy Group, Inc. will suspend issuing new equity for its stock investment, dividend reinvestment and equity compensation plans, and will return to open market purchases for these programs. Integrys Energy Group expects to record a one-time after-tax gain of $0.60 per share. After a transition period of one to two years, Integrys Energy Group expects this transaction to be accretive to earnings by approximately $0.06 per share on an ongoing basis. Bracewell & Giuliani LLP and Foley & Lardner LLP were primary outside legal advisors to Integrys Energy Group in this transaction. Rothschild Inc. serves as BBIP’s financial advisor for this transaction, and Baker & McKenzie LLP serves as its legal advisor. The Bank of Nova Scotia and RBC Capital Markets are jointly providing structuring and placement advice together with financing for the transaction. About Integrys Energy Group, Inc. Integrys Energy Group is a diversified energy holding company with regulated natural gas and electric utility operations (serving customers in Illinois, Michigan, Minnesota, and Wisconsin), an approximate 34% equity ownership interest in American Transmission Company (a federally regulated electric transmission company operating in Wisconsin, Michigan, Minnesota and Illinois), and non-regulated energy operations. More information is available at www.integrysgroup.com. About BBIP BBIP is an infrastructure equity investment fund with offices in London and New York focusing on investments in utilities, energy and transport infrastructure in the United States, Canada and Europe. BBIP’s total commitments as of December 2013 were $469 million from investors, including pension funds and life insurance companies from the United States, Germany, Switzerland, and the UK. For more information on BBIP please visit www.bbip.com. BBIP is sponsored by Balfour Beatty plc (Balfour Beatty), a global infrastructure group with capabilities in professional services, construction services, support services and infrastructure investments. Balfour Beatty has significant experience in the electric utility sector and employs approximately 40,000 people worldwide. More information is available at www.balfourbeatty.com. Forward-Looking Statements This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. You can identify these statements by the fact that they do not relate strictly to historical or current facts and often include words such as "anticipate," "expect," "intend," and other similar words.
Forward-looking statements are beyond the ability of Integrys Energy Group or BBIP (together, The Parties) to control and, in many cases, The Parties cannot predict what factors would cause actual results to differ materially from those indicated by forward-looking statements. Please see Integrys Energy Group's periodic reports filed with the Securities and Exchange Commission (including its 10-K and 10-Qs) for a listing of certain factors that could cause actual results to differ materially from those contained in forward-looking statements.