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El Paso Electric, Infrastructure Investments Fund Agree to Extend Termination Date for Acquisition
Monday 01 June 2020

Texas, US-based utility operator El Paso Electric company (NYSE: EE) and private investment vehicle the Infrastructure Investments Fund have mutually agreed to extend the termination date for the transaction under the terms of their merger to September 1, 2020, the principals said.

As previously reported, the proposed acquisition is pending final approval from the Federal Energy Regulatory Commission.

On April 15, 2020, EPE and IIF filed proposed mitigation options with the FERC as requested by the FERC in its March 30, 2020 order conditionally approving the proposed acquisition.

The FERC's approval of the parties' mitigation plan is the last regulatory approval needed to close the proposed acquisition. EPE and IIF continue to expect to close the transaction in the first half of 2020.

The USD 4.3bn cash deal was announced last June.

Shareholder approval of the transaction was achieved last September.

El Paso Electric is a regional electric utility providing generation, transmission and distribution service to approximately 428,000 retail and wholesale customers in a 10,000 square mile area of the Rio Grande valley in west Texas and southern New Mexico.

Lazard is serving as financial advisor and Baker Botts L.L.P. is acting as legal advisor to EPE. BofA Merrill Lynch is acting as exclusive financial advisor and Skadden, Arps, Slate, Meagher and Flom LLP is acting as legal advisor to IIF.

In addition, IIF has a committed bridge financing facility in place led by BofA Merrill Lynch to support the transaction.
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Date Published: 01/06/2020

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