December 5 (Renewables Now) - Tilt Renewables Ltd (NZE:TLT) today said it has agreed to offload its largest asset, the 270-MW Snowtown 2 wind farm in South Australia, in a deal with an enterprise value of AUD 1.07 million (USD 732m/EUR 661m).
The deal with a company wholly‐owned by funds managed by Palisade Investment Partners Ltd and First State Super will include the sale of shares in Snowtown 2 Wind Farm Holdings Pty Ltd for AUD 472 million and the transfer of an existing project finance facility with USD 611 million of remaining debt in it.
The wind farm's sale follows a strategic review that was initiated in June this year. CEO Deion Campbell said the move is in line with the company’s focus to free up capital to execute the near-term opportunities from its development pipeline.
Powered by 90 Siemens turbines, the Snowtown 2 wind park was switched on in 2014 and has been generating power for five years now. It has a long-term off-take contract for 100% of the generated electricity and renewable energy certificates that ends in 2035. Last month, Tilt Renewables secured a project financing package of AUD 616 million to retire existing debt for the power plant.
New Zealand-based Tilt Renewables expects to finalise the sale by end-2019, getting about AUD 455 million in net proceeds. As a result, it has increased its guidance for 2019 earnings before interest, tax, depreciation and amortisation (EBITDAF) to AUD 118 million-122 million.
(AUD 1.0 = USD 0.684/EUR 0.617)