Pattern Energy picks up 250 MW Canadian, US wind for $293m

Pattern Energy Group is set to expand its portfolio to 4.4 GW after acquiring majority interests in two wind farms with a combined capacity of 250 MW for $293m. Its stakes in the 300 MW Henvey Inlet Wind in Ontario and 220 MW Grady Wind in Mexico also include long-term power purchase agreements with investment-grade offtakers.

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)

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