Atlantic Power Corp (NYSE:AT) Issues Update In Response To Amended Schedule 13D Submission By Mangrove Partners


Atlantic Power Corp (NYSE:AT) issued a statement in response to inquiries about a modified Schedule 13D submitted by the firm’s largest shareholder, Mangrove Partners and specific affiliated entities, collectively called “Mangrove.”

The buzz

Atlantic Power reported that on January 10, 2018, the management closed a conference call with Mangrove. During the call, latter firm recommended that the firm evaluate commercial prospects for those power plants that are presently not functional, those that have “PPAs” set to expire in the upcoming few years, and those PPAs that may have surplus power available for sale.

Atlantic Power has had an active commercial initiative with respect to these facilities for some time, including following potential alternative applications for current sites and commercial arrangements with new or existing customers. The firm appreciated Mangrove’s input and their inclination in prospective co-investment with the firm.

During the call, Mangrove stated numerous types of businesses as prospective areas of new consumer demand. One area stated was cryptocurrency mining and linked operations. Although the firm may evaluate that segment, as it would other prospective businesses, there are no current talks with cryptocurrency miners or linked businesses or with Mangrove linked to that sector. The firm would take a cautious stance of counterparty credit risk for any such operations.

Atlantic Power operates and owns a diverse fleet of 22 power generation assets across 9 states in the U.S. and two provinces in Canada. The firm’s power generation assignments sell electricity to utilities as well as other large commercial clients mainly under long-term PPAs, which look to reduce exposure to fluctuations in commodity prices. Total electric generating capacity of the respective portfolio on a gross ownership basis is around 1,793 megawatts and on a net ownership basis is around 1,440 MW. As of now 18 of the projects are operational, totaling 1,280 megawatts on a net ownership basis.

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