Pattern Energy Group has acquired 35MW owned stake in the Stillwater Wind (Stillwater) facility from Pattern Energy Group 2.
Image: Pattern Energy acquires stake in Stillwater wind facility in Montana. Photo courtesy of andrew sim/Freeimages.com.
Stillwater commenced commercial operations in late October and is located in Stillwater County, Montana.
Transaction Highlights
The cash purchase price for Pattern Energy’s 35MW owned interest in Stillwater is approximately $23m, which represents less than a 10x multiple of the five-year average cash available for distribution (CAFD)
First acquisition of an identified right of first offer (iROFO) project from Pattern Development 2.0
Increases Pattern Energy’s operating portfolio to nearly 4GW of gross capacity, with more than 2.8GW of owned capacity, across 24 projects, excluding the project it has agreed to sell
Pattern Energy acquired 51% of the class B interests in Stillwater for a total cash consideration of approximately $23m, which represents a CAFD multiple of less than 10x of the five-year average CAFD, and was funded using available liquidity. The Public Sector Pension Investment Board (PSP Investments) acquired 49% of the class B interests in Stillwater. Pattern Energy will operate the facility.
Pattern Energy CEO Mike Garland said: “This accretive acquisition is another proof point of our ability to execute our growth strategy and increase our CAFD without relying on issuing common equity.
“Stillwater is the first of two projects from our iROFO list in Montana, a robust wind resource region, and the fourth project we have executed under the joint venture arrangements with PSP Investments. It is also the first acquisition we have made directly from Pattern Development 2.0, providing meaningful benefits to the business through our 29% ownership interest in Pattern Development 2.0.”
Stillwater has a 25-year power purchase agreement for 100% of the energy produced. Stillwater is utilizing a total of 31 Siemens Gamesa wind turbines comprised of five 2.3MW turbines with 108 meter rotors and 26 2.625MW turbines with 120 meter rotors. During each year of operations, the 80MW facility will generate energy equal to the needs of more than 23,000 Montana homes.
Source: Company Press Release