Northland enters Spain with 540-MW renewables portfolio acquisition

Canadian power producer Northland Power Inc (TSE:NPI) is set to acquire a 540-MW operational wind and solar portfolio in Spain, marking its entry into the Iberian country.

The company on Wednesday said that it has entered into a definitive agreement with the seller, Helia Renovables FCR, a fund sponsored by Madrid-based Plenium Partners Asset Management SGEIC SA and Spanish lender Bankinter SA (BME:BKT).

The financial arrangement between the parties include Northland Power paying EUR 345 million (USD 413.4m) in cash upon closing and assuming a non-recourse fixed-rate debt totalling EUR 716 million.

The acquisition is subject to customary closing conditions and requires foreign investment approval by Spanish regulators. Northland said it expects to close the deal in the third quarter of 2021.

The targeted portfolio consists of 33 plants in operation, of which 424 MW are onshore wind, 66 MW photovoltaic (PV), and 50 MW concentrated solar power (CSP). All assets operate under Spain's 2013 regulatory framework.

Following the acquisition, Northland’s total net installed capacity will rise to 2,806 MW.

The company also announced a CAD-900-million (USD 720.5m/EUR 601.6m) bought deal equity financing to raise funds for the cash portion of the Spanish portfolio and the acquisition of other identified projects. It said it has agreed with a syndicate of underwriters bookrun CIBC Capital Markets and National Bank Financial Inc for them to purchase roughly 20.5 million common shares at an offering price of CAD 44.0 per share.

(EUR 1.0 = USD 1.198)

(CAD 1.0 = USD 0.801/EUR 0.668)

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