Atlantic Power Corporation has closed the acquisition of 100% of the membership interests in Cadillac Renewable Energy, which is a 39.6MW wood-fired power facility located in Cadillac, Michigan.
The purchase price was $77m, plus customary working capital adjustments, and was funded by $34m of cash on hand and $43m of assumed non-recourse, project-level debt.
The assumed non-recourse debt amortizes fully over the term of the power purchase agreement.
Operations and maintenance of the facility will be managed by Rollcast Energy, Atlantic Power’s majority-owned affiliate.
The company expects to receive distributions from the project in the range of $3.5m to $4.5m per year, starting in 2011.
Atlantic Power is an energy producer with projects located in major markets in the US.