March 8, 2011 / 9:09 PM / 7 years ago

UPDATE 2-Capital Power buys U.S.-based utility co; posts Q4 net loss

* Co buys Bridgeport Energy for $355 mln

* To fund deal with debt, equity

* Q4 loss/shr C$0.04 vs EPS C$0.33 last yr (Adds details)

March 8 (Reuters) - North American independent power producer Capital Power Corp agreed to buy privately held natural gas utility company Bridgeport Energy LLC for $355 million, its second acquisition in the New England region of the United States in less than a month.

In February, Capital Power bought two generating facilities from U.S.-based Brick Power Holdings for about $315 million. . The three power plants will add more than 1,000 megawatts (MW) of combined cycle natural gas fired generation capacity.

The company said it will use debt and equity to finance both the deals.

It plans to raise C$201.7 million ($207.4 million) by offering 8.1 million shares at C$24.9 each to a syndicate of underwriters co-led by TD Securities and CIBC World Markets.

Capital Power expects the acquisition to add an average of 3 Canadian cents a share in earnings per year during the first five full years, with a no impact in earnings in the first two years. The deal is expected to close in May.

Bridgeport Energy LLC, which will be bought through Capital Corp’s unit, is a natural gas-fired combined cycle plant with a nominal capacity of 520 MW.

Capital Power will have added or placed into development about 2,000 MW of generating capacity since its initial public offering in 2009, post the acquisition, it said in a statement.

Separately, Capital Power, which aims to reach 10,000 MW of assets by 2020, posted a fourth-quarter loss of C$1 million, or 4 Canadian cents a share, compared with a profit of C$7 million, or 33 Canadian cents, last year.

Adjusted profit was 26 Canadian cents a share for the quarter.

Revenue dropped to C$440 million in the quarter, from C$497 million last year.

The Edmonton-based company’s shares, which, closed at C$25.68 on Tuesday on the Toronto Stock Exchange. They have gained 7 percent in the last three months. ($1 = 0.973 Canadian Dollars) (Reporting by Aftab Ahmed in Bangalore; Editing by Jarshad Kakkrakandy)

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