Capital Power completes purchase of Goreway Power Station Holdings

Capital Power Corporation completed its acquisition of Goreway Power Station Holdings Inc., which owns the Goreway Power Station, from JERA Co., Inc. (JERA) and Toyota Tsusho Corporation for a total of $977 million. 

The purchase price comprised $387 million in total cash consideration, subject to working capital and other closing adjustments, and the assumption of $590 million of project level debt. Capital Power also completed a related equity financing, which involved a $130-million subscription receipt offering. 

The Goreway Power Station is an 875 MW natural gas power generation facility in the Greater Toronto Area. 

Borden Ladner Gervais LLP advised Capital Power Corporation with a team led by Kent Howie and M. Scott Wilson, that included Robert Eeuwes, Kristyn Annis, John Vellone, Stephen Jaggers (electricity markets), Daniel Lang (tax), Denes Rothschild, Subrata Bhattacharjee (competition), Andrew Guerrisi (real estate), Carlos Cerqueira, Stefan Timms, Stephen Nguyen, Eric Little, Sarah-Ann Fogarty (corporate commercial), David Whelan, Daniel Sears (financial services), Peter Bryan (oil & gas), Lloyd McLellan, Shane Barnes, Jason Wang (securities), and Rob Weir (employment). 

Milbank LLP and McCarthy Tétrault advised JERA and Toyota Tsusho Corporation. The McCarthy team was led by Suzanne Murphy, and included Seán O’Neill, Kerri Lui, George Vegh, Heloise Apesteguy-Reux, and Chanelle Bristol (power and m&a), Oliver Borgers and Jonathan Bitran (competition), Patrick McCay and Kabir Jamal (tax), Joanna Rosengarten (environment), Trevor Lawson (labour & employment), and William McCullough (real property). The Milbank team was led by Eric Silverman with Bill Bies, Javad Asghari and Guy Waldron.