About everyone on here knows AEP has closed the sale of its River Transportation Operations to ACBL. As AEP is a company with publicly traded stock, it has to make certain disclosures to the Securities and Exchange Commission. I took a look at AEP's most recent filings to see if there was anything interesting about the ACBL deal. There were a few things in the quarterly report. I have copied and pasted some of those below.
To see the entire document, click here.
Here are the excerpts for those who are interested:
AEP
RIVER OPERATIONS
Third
Quarter of 2015 Compared to Third Quarter of 2014
Earnings
Attributable to AEP Common Shareholders from our AEP River Operations segment
decreased from $11 million in 2014 to $4 million in 2015 primarily due to a
loss on AEPRO's equity investment in IMT due to bankruptcy of an IMT customer.
Nine
Months Ended September 30, 2015 Compared to Nine Months Ended September 30,
2014
Earnings
Attributable to AEP Common Shareholders from our AEP River Operations segment
decreased from $17 million in 2014 to $16 million in 2015 primarily due to a
loss on AEPRO's equity investment in IMT due to bankruptcy of an IMT customer,
partially offset by lower fuel prices and reduced consumption.
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AEP
River Operations
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Commercial
barging operations that transports liquids, coal and dry bulk commodities
primarily on the Ohio, Illinois and lower Mississippi Rivers.
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In
October 2015, we signed an agreement to sell AEPRO to a nonaffiliated party.
The AEP River Operations segment is comprised entirely of AEPRO. However, we
will retain AEPRO's investment in IMT. See "AEPRO (AEP River Operations
Segment)" section of Note 6 for additional information.
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Disposition of AEP
River Operations
In
October 2015, we signed an agreement to sell our commercial barge
transportation subsidiary, AEPRO, to a nonaffiliated party. The sale
of AEPRO is subject to regulatory approval including federal clearance pursuant
to the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Upon
close of the sale, the nonaffiliated party will acquire AEPRO by purchasing all
of the common stock of AEP Resources, Inc., the parent company of
AEPRO. The nonaffiliated party will assume certain assets and
liabilities of AEPRO, excluding the equity method investment in International
Marine Terminals (IMT) which is a bulk commodity transfer facility jointly
owned with Kinder Morgan L.P. "C", pension and benefit assets and
liabilities and debt obligations. We expect to net approximately
$400 million in cash after taxes, debt retirement and transaction
fees. The sale is expected to close in the fourth quarter of 2015.
An after tax gain ranging from approximately $100 million to $150 million is
expected from the sale subject to working capital and other adjustments.
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ASSETS
AND LIABILITIES HELD FOR SALE
AEPRO
(AEP River Operations Segment)
During
the third quarter of 2015, we evaluated bids from prospective buyers, selected
a buyer and received approval from AEP's Board of Directors to proceed with the
sale to the nonaffiliated party. In October 2015, we signed an
agreement to sell our commercial barge transportation subsidiary, AEPRO, to a
nonaffiliated party. The sale of AEPRO is subject to regulatory
approval including federal clearance pursuant to the Hart-Scott-Rodino
Antitrust Improvements Act of 1976. Upon close of the sale, the nonaffiliated
party will acquire AEPRO by purchasing all of the common stock of AEP
Resources, Inc., the parent company of AEPRO. The nonaffiliated
party will assume certain assets and liabilities of AEPRO, excluding the equity
method investment in IMT, pension and benefit assets and liabilities and debt
obligations. We will retain ownership of our captive barge fleet
that delivers coal to the company's regulated coal-fueled power plant units
owned or leased by AEGCo, APCo, I&M, KPCo and WPCo. We signed a
contract with the nonaffiliated party to dispatch and schedule our captive
barge fleet for the company's regulated coal-fueled power plant
units. We also contracted with the nonaffiliated party to barge coal
for AGR. These agreements with the nonaffiliated party extend through the end
of 2016. The sale is expected to close in the fourth quarter of
2015.
