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Clearway Energy (CWEN) Subsidiary Selling Thermal Business to KKR for $1.9 Billion

Monday, October 25, 2021 08:52 AM | Carl Pettit
Clearway Energy (CWEN) Subsidiary Selling Thermal Business to KKR for $1.9 Billion

Clearway Energy, Inc. (CWEN) announced today, Oct. 25, that its subsidiary Clearway Energy Operating LLC will be selling its Thermal Business to KKR for a “total consideration of $1.9 billion,” with net cash proceeds of approximately $1.3 billion expected from the deal, subject to closing adjustments.

Pre-market this morning, CWEN stock gained 1.34% in value.

Clearway Community Energy

The Thermal Business Clearway Energy Operating LLC is selling is known as Clearway Community Energy. This business is made up of “thermal infrastructure assets that provide steam, hot water and/or chilled water, and in some instances electricity, to commercial businesses, universities, hospitals, and governmental customers across the United States.” The transaction is expected to close sometime during the first half of 2022.

Clearway Energy CEO Comments

“This divestiture will provide Clearway with an unprecedented degree of financial flexibility and will eliminate any need to issue new equity to fund our committed investments, while also providing capital to fund future growth objectives and further enhance shareholder value,” Clearway Energy CEO Christopher Sotos commented. “Considering our sponsor’s robust development pipeline, the Company is now in one of the best positions in its history to deliver long term CAFD per share growth and economic value.”

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