NextEra Energy Partners buys 1.4-GW renewables portfolio

NextEra Energy Partners LP (NYSE:NEP) said today it has agreed to purchase a 1,388-MW portfolio of wind and solar projects in the US from NextEra Energy Resources LLC.

The portfolio of 11 contracted renewable energy assets will be acquired for USD 1.275 billion (EUR 1.1bn), subject to working capital and other adjustments, plus the assumption of USD 930 million in tax equity financing and USD 38 million of non-recourse project debt. The deal, expected to close in the fourth quarter of 2018, will be funded through the USD 573 million NextEra Energy Partners received from the sale earlier this year of its Canadian assets and a USD-750-million convertible equity portfolio financing it has entered into with a fund managed by BlackRock Global Energy & Power.

"This transaction replaces the Canadian portfolio that we divested earlier this year with higher-yielding assets in the U.S. that benefit from the lower effective corporate tax rate and longer tax shield," commented chairman and chief executive Jim Robo. Of the portfolio financing, Robo said that it "is expected to be a very attractive, low-cost equity-like product for NextEra Energy Partners."

NextEra Energy Partners announced the sale of six wind and solar power assets with an overall capacity of 396 MW, all located in Ontario, Canada in April.

The portfolio it is now buying includes:

(USD 1 = EUR 0.863)

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