October 11 (Renewables Now) - US company Pattern Energy Group Inc (NASDAQ:PEGI) today said it has agreed to acquire over 250 MW of wind capacity in Canada and the US with which it will expand its portfolio to some 4.4 GW.
More specifically, the firm is acquiring stakes in two wind farms which have long-term power purchase agreements (PPAs) in place with investment-grade offtakers. CEO Mike Garland said the assets will be immediately accretive to cash available for distribution (CAFD).
Pattern Energy will pay USD 293 million (EUR 266m) for the assets. A portion of that sum will be secured through a private placement of 10.4 million Series A preferred stock with certain institutional investors.
Details on the two acquisition agreements are available in the table.
|Project name||Henvey Inlet Wind||Grady Wind|
|Location||Georgian Bay, Ontario||Curry County, New Mexico|
|Total capacity||300 MW||220 MW|
|Turbines||Vestas 3.45 MW||Siemens Gamesa 2.625 MW|
|Stake to be acquired||50% equity ownership interest||51% of Class B member interest|
|Share of capacity||150 MW||101 MW|
|Seller||PEG LP||Pattern Development|
|Consideration||CAD 242.4 million||USD 99.45 million|
|Commercial operation start||September 2019||Q3 2019|
|Offtaker||Independent Electricity System Operator||Sacramento Municipal Utility District|
|PPA term||20 years||25 years|
Pattern said that as part of the first deal, it is also acquiring from PEG LP a CAD-97-million loan outstanding with Nigig Power, expected to be repaid in less than a year. Nigig is the owner of the remaining 50% in the Henvey Inlet wind farm.
The company also said the remaining Class B member interest in the Grady Wind farm will be purchased by the Public Sector Pension Investment Board (PSP Investments).
(USD 1 = EUR 0.91)