Innergex to buy TransCanada's interest in 590-MW Quebec wind portfolio

Natural gas transmission networks operator TransCanada Corp (TSE:TRP) said today it will sell its 62% stakes in the five Cartier wind farms in Quebec, totalling 590 MW, for about CAD 630 million (USD 483m/EUR 416m).

The buyer is Innergex Renewable Energy Inc (TSE:INE), which already owns the remaining interest in the facilities. The transaction will also give Innergex full ownership of the operating entities of the five wind parks.

The Cartier wind portfolio includes the 109.5-MW Baie-des-Sables, 109.5-MW Carleton, 211.5-MW Gros-Morne, 100.5-MW L'Anse-a-Valleau and 58.5-MW Montagne Seche wind parks, located in the Gaspe peninsula. Each facility has an existing power purchase agreement (PPA) with Hydro-Quebec. These contracts end between 2026 and 2032.

Innergex plans to finance the acquisition of the stakes with two newly-arranged credit lines -- one of CAD 400 million and one of CAD 240 million -- from BMO Capital Markets and TD Securities. The second facility will be reimbursed through the strategic divestment of a minority interest in the Cartier portfolio and other assets. Innergex noted it intends to find a partner to acquire such stake.

“With this acquisition, our breakthrough in Chile and our projects under construction or in development, not only will we reach our goal of net 2,000 MW but we should reach net 2,500 MW by 2020,” said Michel Letellier, president and CEO of Innergex.

Subject to regulatory approvals, the transaction with TransCanada is expected to close in the final quarter of the year. Innergex expects the purchase to generate revenues of about CAD 82.9 million and projected adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of some CAD 68.4 million annually.

(CAD 1.0 = USD 0.767/EUR 0.660)

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