Buyout creates largest US independent power transmission co

Michigan Electric Transmission Company has been acquired by ITC Holdings in an $865 million deal which creates the largest independent electricity transmission company in the United States , based on transmission load served.

ITC Holdings, based in Novi, Michigan, operates a regulated, high-voltage system and through its wholly owned subsidiary, ITC Transmission, the company provides electricity and related services to wholesale customers that supply approximately 4.9 million end-use consumers.

The deal, the largest ever financing for independent electricity transmission acquisition has been approved by the Federal Energy Regulatory Commission (FERC) and gives ITC Holdings jurisdiction over METC’s six million customers in Michigan’s Lower Peninsula. It is hoped it will result in increased operational

efficiencies and improved system reliability.

ITC Holdings Corp financed the deal via the proceeds of a public offering of 6,580,987 shares of common stock and a $510 million private placement of senior notes in two tranches. Lehman Brothers and Credit Suisse acted as lead underwriters for the common stock offering and as lead initial purchasers for the notes offering.

“Private equity firms and now even hedge funds are joining traditional investors such as independent power producers and investor-owned entities in advancing industry consolidation,” said Robert Williams of international law firm Milbank, Tweed, Hadley & McCloy LLP who represented Lehman Brothers and Credit Suisse in the deal.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here