Pattern Energy has commited to acquire 324MW Broadview wind power facility in New Mexico for $269m from Pattern Energy Group (Pattern Development).
The deal also includes associated independent 35-mile 345 kV Western Interconnect transmission line.
Under the deal Pattern Energy will acquire an 84% initial cash flow interest in Broadview and a 99% ownership interest in the transmission line.
The amount will be funded by Pattern Energy at the beginning of commercial operations, schedule in early 2017. Pattern Energy will use its currently available corporate liquidity and up to $160m long-term project holding company debt financing commitments.
The deal will be completed with the commencement of commercial operations of the wind power facility. Pattern Development has already started the construction of Broadview wind power facility, which is located 30 miles north of Clovis, New Mexico.
Broadview wind power facility will feature 141 Siemens 2.3MW wind turbines which will produce 324MW of energy, enough to power about 180,000 US households. But, the project will be limited to 297MW of injection capacity at the transmission interconnection point.
With Broadview addition, Pattern Energy expects to generate about $28m of cash distribution per year based on five year projected average run rate.
Broadview has entered into two 20 year power purchase agreements with Southern California Edison to sell 100% of its output, factored at 297MW into the project’s economics.
Pattern Energy President and CEO Mike Garland said: "This world-class wind project will deliver attractively-priced power directly into the California market under two 20-year contracts with Southern California Edison.
"Broadview is a terrific addition to the Company; representing a twelve percent increase to our current portfolio’s owned capacity and a material, accretive increase in our cash available for distribution. We identified this opportunity earlier this year, as a transaction we would likely commit to acquire when it reached COD.
"We can meet the funding requirements for the acquisition with a portion of our currently available cash and liquidity and from new project financing facilities. Our commitment is to provide dividends, especially in uncertain markets, and this project supports that commitment."