Pattern Energy to buy into 324-MW New Mexico wind farm, transmission line

Pattern Energy Group Inc (NASDAQ:PEGI) on Thursday committed to buy interests in the 324-MW Broadview wind farm in New Mexico and the associated 345-kV Western Interconnect transmission line from parent Pattern Development.

Pattern Energy will pay Pattern Energy Group LP, the official name of Pattern Development, about USD 269 million (EUR 243m) for an 84% initial cash flow interest in the wind park and a 99% ownership interest in the transmission line once the two assets commence commercial operations in less than a year.

At the same time, institutional equity investors have pledged to acquire from Pattern Development a 16% initial cash flow interest in, and a 99% initial taxable income allocation from, the Broadview wind farm. Pattern Energy will keep an owned interest of 272 MW in Broadview based on its initial cash flow share.

Pattern Development is now initiating construction work on the wind project, which involves erecting 141 units of 2.3-MW Siemens turbines at a site to the north of Clovis, New Mexico. Broadview will interconnect to the Western Interconnect transmission line and will be able to inject 297 MW of capacity. The wind park has two 20-year off-take contracts with Southern California Edison (SCE).

The acquisition of the wind park represents a 12% increase to Pattern Energy’s owned capacity and a material, accretive rise in its cash available for distribution (CAFD), said Mike Garland, president and CEO of Pattern Energy.

The buyer will fund the transaction with currently available corporate liquidity and up to USD 160 million of long-term project holding company debt financing commitments. It estimates that the two assets will generate some USD 28 million of CAFD a year, based on a five-year average run rate.

(USD 1.0 = EUR 0.902)

Choose your newsletter by Renewables Now. Join for free!