The company has entered a convertible equity portfolio financing with Ontario Teachers’ Pension Plan Board, to secure an initial funding of around $645m for the acquisition, around $160m by the end of the third quarter of 2023
NextEra Energy Partners has signed an agreement with subsidiaries of NextEra Energy Resources to acquire a portfolio of renewable projects for a total consideration of $805m.
The acquisition includes a 49% stake in renewable energy projects totalling around 1.5GW and an indirect membership stake in about 345MW portfolio of operating wind assets.
Upon closing the acquisition, NextEra Energy Partners will integrate its stake in the newly acquired projects, along with that in six existing renewables assets into a new portfolio.
In addition, the company entered a convertible equity portfolio financing with Ontario Teachers’ Pension Plan Board to invest $805m into the new portfolio.
Ontario Teachers will initially fund around $645m, to finance the acquisition, and the second funding of around $160m by the end of the third quarter of 2023.
The second round of funding is subject to Appaloosa Run Wind, Eight Point Wind and Yellow Pine Solar achieving commercial operations.
NextEra Energy Partners is expected to complete the acquisition later this year, subject to customary closing conditions.
NextEra Energy chairman and chief executive officer John Ketchum said: “The transactions announced today demonstrate NextEra Energy Partners’ continued ability to execute on its long-term growth plan and continued access to attractive low-cost sources of capital.
“The acquisition of the high-quality, long-term contracted renewable energy assets further enhances the diversity of the partnership’s existing portfolio.
“Combining this acquisition with the recapitalization of six existing NextEra Energy Partners’ assets through the convertible equity portfolio financing with a global infrastructure investor is expected to provide significant benefits for unitholders.”
The renewables portfolio to be acquired includes a 49% stake in Emerald Breeze, an existing portfolio holding company that indirectly owns 1,029MW Great Prairie Wind in Texas and Oklahoma.
Emerald Breeze also owns the 172MW Appaloosa Run Wind generation facility in Texas, around 111MW Eight Point Wind in New York, and 125MW Yellow Pine Solar generation and 65MW storage facility located in Nevada.
NextEra Energy Partners also acquires an entire indirect membership stake in the 107MW Elk City Wind II project located in Oklahoma, the 80MW Sac County Wind facility in Iowa, and 160MW Sholes Wind located in Nebraska.
Last year, the company signed an agreement with a subsidiary of NextEra Energy Resources to acquire a 50% stake in a 2.52GW renewables portfolio for $824m.