US wind power company Pattern Energy Group Inc (NASDAQ:PEGI) said Wednesday it has completed the acquisition of interests in the 324-MW Broadview wind project in New Mexico and the associated Western Interconnect transmission line from Pattern Energy Group LP, or Pattern Development 1.0.
The acquisition, announced in June last year, closed following the wind project becoming operational, which was achieved in late March.
Pattern Energy acquired an 84% initial cash flow interest in Broadview and a 99% ownership interest in 35-mile (56 km) 345-kV Western Interconnect line. At the same time, institutional equity investors acquired from Pattern Development 1.0 a 16% initial cash flow interest in, and a 99% initial taxable income allocation from, Broadview.
Pattern Energy bought the assets for USD 269 million (EUR 245m), including cash consideration of USD 215 million and an assumed project loan of USD 54 million secured by Western Interconnect. It funded the cash element from available corporate liquidity. The yieldco expects Broadview and Western Interconnect to generate cash available for distribution (CAFD) of about USD 18 million in 2018 and an average of USD 23 million per year over the five-year period starting in 2018.
The wind power complex consists of 141 Siemens 2.3-MW turbines, totalling 324 MW and has two 20-year off-take contracts with Southern California Edison (SCE). It is limited to 297 MW of injection capacity at its transmission interconnection point.
"This extraordinary project brings inexpensive renewable power from eastern New Mexico, one of the highest wind areas in the west, using dedicated transmission capacity from several transmission systems into California," explained Pattern Energy president and chief executive Mike Garland.