Clearway Energy stock (NYSE:CWENa) rose 2.6% on Monday as the company sold the thermal business housed under a subsidiary to KKR (NYSE:KKR) for $1.9 billion.
The subsidiary, Clearway Energy Operating, expects total net cash proceeds of approximately $1.3 billion under the deal.
The thermal Business, commercially known as Clearway Community Energy, comprises infrastructure assets that provide steam, hot water and/or chilled water, and in some instances electricity, to commercial businesses, universities, hospitals, and governmental customers across the U.S.
The deal is expected to close in the first half of 2022.
Clearway Energy President and Chief Executive Officer Christopher Sotos said the deal will eliminate any need to issue new equity to fund the company’s committed investments, while also providing capital to fuel future growth.