Progress Energy Agrees to Sell Appalachian Coal Mine and River Terminals
Progress Energy recently announced that it has entered into agreements to sell Powell Mountain Coal Co., Dulcimer Land Co., and Kanawha River Terminals to an investor group for $94 million in cash. The Investor Group consists of Pegasus Capital Advisors, L.P., Kelso & Co., and Resource Capital Funds as well as Traxys Projects, an affiliate of Traxys North America, LLC. This is the final divestiture of Progress Energy’s restructuring plan related to the non-regulated investments in Progress Ventures.
Proceeds from the transactions will be used for general corporate purposes. The transactions are expected to close in January 2008 and are subject to customary closing provisions and adjustments. The financial impacts of these transactions are expected to affect the company’s discontinued operations in 2008.
"This is the last step in a successful restructuring plan that has allowed Progress Energy to strengthen its balance sheet and reduce the overall risk profile of the company," said Bill Johnson, chairman, president and CEO, Progress Energy.
Powell Mountain Coal and Dulcimer Land consist of approximately 30,000 acres of land in Lee County, Va., and Harlan County, Ky. There are approximately 40 million tons of coal reserves on the property. Kanawha River Terminals operates five river terminals located on the Ohio River and its tributaries. The facilities have annual capacity in excess of 40 million tons for transloading, blending and storage of coal and other commodities.