Pattern Energy has signed an agreement with Arroyo Energy Investors to sell its operations in Chile.
The transaction includes the sale of the company’s 81MW owned interest in the 115MW El Arrayán Wind project for a cash consideration of $67m.
The wind farm, which is located about 400km north of Santiago on the coast of Chile, started commercial operations in the second quarter of 2014. About 70% of its production has been contracted for sale through a long-term fixed-for-floating hedge with Minera Los Pelambres.
The transaction is expected to be closed within 90 days, subject to customary closing conditions, Pattern Energy noted.
Pattern Energy CEO Mike Garland said: “While the purchase price demonstrates material embedded value in our assets, the primary reason for the sale was strategic. Chile was a good candidate for sale as it was one of the higher cost operations in our fleet because of the distance from the rest of our operations and the different legal, tax and regulatory environments.
“The proceeds of the sale will go to either make further accretive investments, pay down debt, buy back stock or other corporate purposes. We want to thank our employees in Chile who have been outstanding, loyal, smart and demonstrated an excellent work ethic. We could not have asked for a better team.”
Separately, Pattern Energy Group (Pattern Development) has announced the acquisition of the Western Spirit Transmission Line (Western Spirit) and the Mesa Canyons Wind Farm (Mesa Canyons) in New Mexico from Clean Line Energy Partners.
The acquisition of Mesa Canyons will increase Pattern’s wind development footprint in the Estancia Valley of New Mexico to over 3,000MW.
Mesa Canyons will be connected to Western Spirit and will deliver power to the New Mexico grid at the Rio Puerco substation owned by Public Service Company of New Mexico.