El Paso reaches deal to sell 25 US plants for over $900-mil

Washington (Platts)--16Jan2004

Houston, Texas-based El Paso Merchant Energy Friday said it had agreed to sell 25 power plants in the US to a subsidiary of AIG Global Investment Group for $746-mil, plus $174-mil of consolidated non-recourse debt. El Paso said AIG is buying the assets "on behalf of its private equity funds, affiliated companies, and third-party clients." AIG offers international investment advice and asset-management services.

The plants are located in seven states across the US and have a total generation capacity of 1,850 MW. "We are very pleased with this transaction, which is a major step in the execution of our long-range plan," said Doug Foshee, president and CEO of El Paso. The company said it had closed or announced $2.3-bil of sales targeted under the plan and expects further progress in the first quarter toward its goal of $3.6-$3.9-bil. The company expects the transaction to close in the second quarter of 2004.