Atlantic Power: Continues To Operate As Independent Company; Cuts Dividend Rate

(RTTNews) - Atlantic Power Corp. (AT, ATP.TO) announced that, as part of its strategic review process, it has concluded that a sale or merger of the Company is not in the best interests of the company or its stakeholders at this time. The Board also has determined that the interests of the Company and its stakeholders are best served at this time by continuing to operate as an independent company and executing the Company's business plan.

In addition, the Company said it will continue to assess other potential options, including asset sales or the contribution of assets to a joint venture in order to raise additional capital for growth and/or debt reduction.

The Company announced a reduction in its dividend rate to C$0.12 from C$0.40 on an annual basis.

The company also intends to continue its efforts to reduce general and administrative and other corporate expenses. In particular, the Company disclosed in its second quarter 2014 earnings call presentation that it expected reductions in the areas of development and other corporate expenses to exceed the $8 million goal that was initially communicated on the Company's the second-quarter of 2013 earnings call. Since the earnings call, the company said it has identified additional cost savings such that annual run-rate cost savings are expected to total about $15 million in 2015 relative to 2013.

Atlantic Power's Board also announced that it has appointed Director Ken Hartwick, 51, as Interim President and CEO effective immediately, following the mutual agreement for Barry Welch to step down as President, CEO and a Director of the Company. Hartwick will remain a member of Atlantic Power's Board. He will not be a candidate for the permanent President and CEO position and will continue his role as a member of the Board following the appointment of a new President and CEO.

The Board has commenced a process to identify and evaluate candidates to serve as the Company's next President and CEO and will promptly engage a leading executive search firm to assist in the process.

Atlantic Power continues to expect 2014 Project Adjusted EBITDA of $280 to $305 million and Free Cash Flow of $0 to $25 million, which is net of approximately $52 to $55 million of term loan amortization and about $17 million of discretionary optimization investments.