NextEra Energy Partners to buy 391-MW US wind portfolio

NextEra Energy Partners LP (NYSE:NEP) said on Monday it has agreed to buy a 391-MW wind portfolio in two US states from Brookfield Renewable for USD 733 million (EUR 610m).

The portfolio consists of four wind farms: three California facilities -- the 150-MW Alta Wind VIII, 120-MW Windstar and 22-MW Coram wind power plants; and the 99-MW Granite wind farm in New Hampshire.

The long-term contracted assets are located in markets with long-term renewables demand, providing opportunities for re-contracting or repowering once the initial contracts are over, the company said.

The portfolio's capacity is almost fully contracted with investment-grade counterparties and the cash available for distribution (CAFD)-weighted remaining contract life at the time of closing is about 13 years, according to the announcement.

NextEra Energy Partners will fund the acquisition of the unlevered portfolio with undrawn funds from its 2020 convertible equity portfolio financing and existing debt capacity. The base purchase price of USD 733 million is subject to adjustments at closing, which is expected in the third quarter of 2021, following customary closing conditions and regulatory approvals.

NextEra Energy Partners is more optimistic about year-end 2021. Its December 31, 2021, run-rate expectations for adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) and CAFD are now in the upper end of the previously announced ranges of USD 1.44 billion-1.62 billion and USD 600 million-680 million, respectively, reflecting calendar year 2022 expectations for the portfolio at year-end 2021.

(USD 1.0 = EUR 0.833)

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