Infrastructure Investments Fund’s $4.3 Billion Acquisition of El Paso Electric Company

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 & 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.

El Paso Electric Company (EPE) (NYSE: EE) and the Infrastructure Investments Fund, an investment vehicle advised by J.P. Morgan Investment Management Inc. (IIF), have entered into a definitive agreement under which IIF will purchase EPE for $68.25 in cash per share representing an enterprise value of approximately $4.3 billion.

IIF will purchase EPE for $68.25 per share in cash representing an enterprise value of approximately $4.3 billion, including EPE’s net debt. The per share purchase price represents a 17% premium to EPE’s closing price on May 31, 2019, the last trading day prior to the announcement of the agreement. The agreement has been unanimously approved by EPE’s Board of Directors and is expected to close in the first half of 2020, subject to the approval of EPE’s shareholders, the receipt of regulatory approvals and other customary closing conditions. Dividends payable to EPE shareholders will continue in the ordinary course through the closing.

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.

The Skadden team includes: Energy and Infrastructure Projects partner Paul Kraske (Picture); M&A partner Jeremy London and counsel Erik Elsea; Energy Regulation of counsel Clifford (Mike) Naeve; Banking partner Steven Messina (New York); Capital Markets partner Michael Zeidel (New York); Tax partner Sean Shimamoto (Palo Alto); Executive Compensation and Benefits counsel Michael Bergmann; Intellectual Property and Technology partner Bruce Goldner (New York); and Labor and Employment partner David Schwartz (New York).

Baker Botts L.L.P. is acting as legal advisor to EPE

Involved fees earner: Michael Bergmann – Skadden Arps Slate Meager & Flom; Erik Elsea – Skadden Arps Slate Meager & Flom; Bruce Goldner – Skadden Arps Slate Meager & Flom; Paul Kraske – Skadden Arps Slate Meager & Flom; Jeremy London – Skadden Arps Slate Meager & Flom; Steven Messina – Skadden Arps Slate Meager & Flom; Clifford Naeve – Skadden Arps Slate Meager & Flom; David Schwartz – Skadden Arps Slate Meager & Flom; Sean Shimamoto – Skadden Arps Slate Meager & Flom; Michael Zeidel – Skadden Arps Slate Meager & Flom;

Law Firms: Skadden Arps Slate Meager & Flom;

Clients: J.P. Morgan Investment Management Inc. ;

Author: Ambrogio Visconti