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Boralex to buy Invenergy's interest in 201-MW Quebec wind portfolio

The Roncevaux wind farm in Quebec. Source: Invenergy (www.invenergyllc.com)

June 21 (Renewables Now) - Canadian renewables developer Boralex Inc (TSE:BLX) has struck a deal to buy the interest held by Invenergy Renewables LLC in a Quebec wind portfolio with a net capacity of 201 MW for a total cash consideration of CAD 215 million (USD 161m/EUR 140m).

The particular portfolio includes five wind farms in the MRC d'Avignon and the MRC des Appalaches in Eastern Quebec that were commissioned between March 2012 and December 2016. Each plant benefits from a long-term power purchase agreement (PPA) with Hydro-Quebec Distribution, expiring between 2032 and 2041.

More details about the wind parks are available in the table below.

Name Capacity Turbines (number) Current owners Commissioning PPA expiry date
Des Moulins I 136 MW E-82 (59) Invenergy (51%) and la Caisse (49%) December 2013 December 2033
Des Moulins II 21 MW E-92 (9) Invenergy (51%) and la Caisse (49%) December 2013 December 2033
Le Plateau I 139 MW E-70 E4 (60) Invenergy (51%) and la Caisse (49%) March 2012 March 2032
Le Plateau II 21 MW E-92 (9) Invenergy (59.96%/51%) and Regie (40.04%/49%)* December 2014 December 2034
Roncevaux 75 MW GE (34) Invenergy (50%), Energie BSL (33.33%) and Regie (16.67%)** December 2016 December 2041

*Regie intermunicipale de l'energie Gaspesie-Iles-de-la-Madeleine holds a 40.04% interest in the project limited partnership for Le Plateau II and 49% in the general partner of the project limited partnership. It also holds a right of first offer with respect to Invenergy's interest in the asset.

**At the same time, Regie intermunicipale de l'energie du Bas-Saint-Laurent (previously Energie BSL) has 33.33% in Roncevaux, while Regie owns 16.67%. Each has a right of first offer with respect to Invenergy's interest in Roncevaux.

The buyer said it will finance the purchase with a CAD-180-million public offering of subscription receipts and a CAD-45-million private placement of subscription receipts to Caisse de depot et placement du Quebec (la Caisse), which has interests in three of the five wind parks and is also an investor in both Boralex and Invenergy.

The acquisition of Invenergy’s interests in those assets will raise Boralex’s net installed capacity by 12% to 1,820 MW and will extend the weighted average PPA term of its own portfolio to 14 years. Boralex anticipates the new assets to contribute CAD 45 million in annual run-rate earnings before interest, tax, depreciation and amortisation (EBITDA) on a combined basis.

(CAD 1.0 = USD 0.751/EUR 0.651)

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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