A $260m private stock placement will fund the deal involving 330MW Henvey Inlet and 220MW Grady wind facilities
Pattern Energy has agreed to acquire stakes in the 330MW Henvey Inlet wind facility in Canada and the 220MW Grady wind facility in the US from Pattern Energy Group LP (PEG LP) and Pattern Energy Group 2 LP (Pattern Development) for $293m.
Details of Henvey Inlet and Grady wind farms
Located on the northeast shore of the Georgian Bay in Ontario, Henvey Inlet wind farm features 87 units of 3.45MW Vestas turbines.
The facility has a 20-year power purchase agreement (PPA) with the Independent Electricity System Operator (IESO) for its full production. The wind farm came online in September.
Henvey Inlet is 50% owned by Pattern Development while the remaining stake belongs to Nigig Power.
Pattern Energy will pay C$242.4m ($183.55m) for Pattern Development’s stake in the wind farm.
Under the terms of the agreement, the US-based energy company is also acquiring from PEG LP a C$97m loan outstanding with Nigig Power, expected to be repaid in less than a year.
On the other hand, the Grady wind facility consists of 84 units of Siemens Gamesa 2.625MW turbines and is located in Curry County, New Mexico.
The wind farm has a 25-year PPA with Sacramento Municipal Utility District for 100% of its production up to 200MW.
Pattern will pay $99.45m for its 51% Class B member interest in Grady wind farm.
Pattern Energy CEO Mike Garland said: “These acquisitions increase our portfolio by 13% to 4.4 gigawatts of operational capacity across 28 renewable energy facilities.
“The Henvey Inlet and Grady acquisitions are immediately accretive to CAFD per share with each facility characterized by strong cash flow profiles that are backed by long-term power contracts with investment-grade off-takers.
“The preferred stock offering enhances the Company’s financial flexibility and demonstrates our ability to attract institutional capital into our business.
“The preferred security offers an attractive alternative equity funding source that is accretive to our common shareholders.”
A $260m private stock placement will fund the deal involving Henvey Inlet and Grady wind facilities.
Pattern Energy said that the acquisitions will increase its portfolio to 4.4GW of operational capacity across 28 renewable energy facilities in the US, Canada and Japan.