KKR has acquired an indirect minority interest in the Labrador Island Link (LIL) for C$1.19 billion from Emera Inc. The transaction value is made up of C$957 million in cash and C$235 million for assuming Emera’s obligation to fund the remaining initial capital investment. KKR will receive quarterly distribution payments over the remaining life of the 50-year LIL contract.
The LIL is a 1,100 km high voltage transmission line that delivers renewable energy to Newfoundland, Nova Scotia and beyond. It is a vital transmission line of strategic importance to Atlantic Canada and has helped strengthen the Newfoundland and Labrador power grid.
Bennett Jones acted for KKR on the transaction. KKR is a leading global investment firm with a history of successful long-term investments in similar scale infrastructure projects. KKR has significant experience investing in infrastructure globally and has stable, ongoing access to capital, which affords the firm the ability to take a long-term “buy and hold” view.
The Bennett Jones team was led by John Mercury, David Macaulay and John Lawless, and included Kevin Myson, Rebecca Taylor, Niki Gill, Jonathan Filippone, Flutra Kacuri and Kieran Brennan, (Corporate), Anu Nijhawan, Marshall Haughey, Spencer Brown and Anna Lekach (Tax), Laurie Smith and Jayce Eadie (Regulatory), Karen Dawson, Taylor Davis and Dane Patton (Financial Services), Melanie Aitken and Zirjan Derwa (Competition/Investment Canada) and Serge Dupont (Governmental Affairs & Public Policy).
Bennett Jones is Canada's premier energy law firm with the largest dedicated energy group in the country. The firm's lawyers have deep knowledge and experience on major renewable projects and critical infrastructure and are active in all sectors of the energy industry.
The transaction was announced on May 28, 2024, and closed on June 4, 2024. KKR's press release on the transaction is available here.