NEW HAVEN, Conn., June 23, 2004 — UIL Holdings Corporation announced the completion of the sale of its wholly owned subsidiary American Payment Systems, Inc. (APS), a leading U.S. provider of walk-in bill payment services, to CheckFree Corporation, a provider of financial electronic commerce services and products.
UIL received approximately $110 million in cash, subject to certain post closing adjustments, for the outstanding stock of APS and plans to use the proceeds from the sale to pay down short-term debt and for general corporate purposes. The after-tax gain and after-tax proceeds are expected to be $46 million and $65 million, respectively, net of transaction costs.
“APS grew from a local utility bill payment business to a multi-state leading walk-in bill payment business,” commented Nathaniel D. Woodson, UIL’s Chairman, President and Chief Executive Officer. “As part of CheckFree’s offering of electronic billing and payment products, APS is positioned for even greater success.”
About UIL Holdings
UIL Holdings Corporation is the holding company for The United Illuminating Company and several non-utility businesses, including, Xcelecom, Inc., United Capital Investments, Inc. and United Bridgeport Energy, Inc. UI is a New Haven-based regional distribution utility that provides electricity and energy-related services to more than 320,000 customers in municipalities in the Greater New Haven and Greater Bridgeport areas. UIL Holdings World Wide Web address is www.uil.com and the company is traded on the New York Stock Exchange under the symbol UIL.