Infigen to shed US wind ops in USD-272.5m deal

Infigen Energy (ASX:IFN) will sell its US wind power business for USD 272.5 million (EUR 248m) to a newly formed portfolio company affiliated with ArcLight Capital Partners LLC.

The Australian wind farm operator said Wednesday that following a competitive sale process, conducted by UBS Investment Bank, Primary Wind Power LLC will be the one to acquire the US wind business. Last month, Infigen also agreed to sell its US solar development pipeline for up to USD 67.9 million.

The US wind operations include stakes in wind farms with a combined capacity of nearly 1.56 GW. More specifically, Infigen holds Class B equity interests of 1.09 GW on an economic interest basis. Also, Infigen has an investment in Class A cash flow interests in nine of the said wind farms and owns a US-based asset management business.

The Australian company will use most of the proceeds to repay debt.

“A sale of the US wind business will realise the value of future economic benefits associated with Infigen’s Class B interests, which otherwise would not accrue to Infigen in a meaningful way until the end of the decade,” the company said in the statement.

The sale is expected to close by October 2015, but first it needs the approval of Infigen lenders, US regulatory authorities and other parties. The transaction is not expected to have any effect on the “business as usual” operational requirements of Infigen’s Australian business. The outlook for the latter is positive, following the recent compromise deal on the renewable energy target (RET) in Australia.

(USD 1 = EUR 0.910)

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