KKR has entered a binding agreement with Clearway Energy’s subsidiary, Clearway Energy Operating, to acquire thermal business for $1.9 billion.
Based on current estimates, the company expects $1.3 billion of total net cash proceeds as a result of the transaction.
The thermal business, commercially known as Clearway Community Energy, consists of thermal infrastructure assets that provide steam, hot water and/or chilled water, and in some instances electricity, to commercial businesses, universities, hospitals and governmental customers across the United States.
“This divestiture will provide Clearway with an unprecedented degree of financial flexibility and will eliminate any need to issue new equity to fund our committed investments, while also providing capital to fund future growth objectives and further enhance shareholder value,” said Christopher Sotos, president and CEO of Clearway Energy. “Considering our sponsor’s robust development pipeline, th
