Buyers Targeting the Utilities

April 28, 2008

Washington-stage utility Puget Energy Inc. has a $3.1 billion debt load that nearly equals its total market capitalization, which, as of press time, stood at $3.4 billion. That's not the kind of capital structure that tends to attract financial buyers. Moreover, the red tape involved with deals in the utilities sector would normally turn off to potential suitors, as certainty can be difficult find in the space. With that said, Puget Energy took one step closer to its sale to Macquarie Infrastructure Partners earlier this month, when it received shareholder approval for the deal. While a potential transaction will still undergo months of scrutiny by regulators, the efforts of Macquarie, underscore the hurdles buyers are willing to cross to snap up properties in the sector.

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