J.P. Morgan Fund to Pay $4.3B for El Paso Electric

J.P. Morgan Investment Management Inc.’s Infrastructure Investments Fund (IIF) entered into a definitive agreement to acquire El Paso Electric for a total cost of $4.3 billion. The transaction is anticipated to close in the first half of 2020, and includes EPE’s net debt.

Representatives of the fund indicated that EPE’s workforce and headquarters will remain in El Paso; the entity will continue as an independently-operated, regulated utility. Additionally, EPE and IIF are committed to $21 million in credits on customer electric bills over a 36-month period, and will continue with community and environmental endeavors.

Lazard is serving as financial advisor and Baker Botts LLP is legal advisor to EPE. BofA Merrill Lynch is acting as exclusive financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP is legal advisor to IIF. In addition, IIF has a committed bridge financing facility in place, led by BofA Merrill Lynch, to support the transaction.

Pictured: El Paso Electric Corporate Headquarters

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