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DPL selling 972-MW generation portfolio to Kimura Power

DPL Inc. and its AES Ohio Generation LLC subsidiary struck a deal to sell 972.5 MW of power generation and related assets to Kimura Power LLC for $241 million in cash, according to a Dec. 18 Form 8-K filing.

The transaction dated Dec. 15 involves the 236-MW Montpelier combustion turbine facility in Indiana and the 586-MW Tait units 1-3 and units 4-7 CT and diesel generation facility, the 101.5-MW Yankee CT and solar facility, the 25-MW O.H. Hutchings CT facility, the 12-MW Monument diesel generation facility and the 12-MW Sidney diesel generation facility, all in Ohio.

The purchase price is subject to adjustments at closing based on working capital, capacity commitments and timing of the closing of the transaction, according to the filing. The deal is subject to expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and approval by the Federal Energy Regulatory Commission and other closing conditions.

DPL will use the sale proceeds to repay in full the outstanding term loans under a credit agreement and to repay additional debt and/or fund infrastructure investments.

In connection with the deal, the company expects to record impairment charges of about $95.0 million to $110.0 million. The anticipated impairment is not expected to result in any current or future cash expenditures.

DPL is a subsidiary of AES Corp., which on Dec. 18 agreed to sell its 51% equity interest in the operating 630-MW Masinloc coal-fired power plant and the 10-MW Masinloc energy storage project, and the 335-MW under-construction Masinloc 2 coal-fired project in Philippines for $1.05 billion to pay down parent debt.