Atlantic Energy has completed the sale of its 521MW wind energy portfolio in the US to a unit of SunEdison, TerraForm Power.
The wind projects are worth nearly $347m. They are located across the states of Idaho and Oklahoma in the country.
The deal includes Atlantic Power’s stake in five projects including 124.5MW Goshen North (12.5%), 183MW Idaho Wind (27.6%), 120MW Meadow Creek (100%), 80MW Rockland Wind Farm (50%) and 298MW Canadian Hills (99%) facilities.
Atlantic Power has received net cash proceeds of approximately $333m from the transaction and has been able to deconsolidate project debts of $249m and non-controlling interest amounting to $229m.
The firm has also called for redemption all of its outstanding 9% senior unsecured notes due November 2018.
Atlantic Power has around $310.9m of outstanding principal amount that will be redeemed as a part of this transaction.
The firm intends to utilise net proceeds from the wind assets sale to finance its redemption of the notes.
Atlantic Power president and chief executive officer said James J Moore Jr said: “The sale of our wind projects and the redemption of our senior unsecured notes achieve two major components of our plan – cost reduction, including interest expense, and debt reduction.
“The combined impact is cash flow positive on an annualised basis.
“These actions also strengthen our balance sheet by reducing our leverage and improve our medium-term debt maturity profile. We are continuing to explore other opportunities to reshape our remaining corporate debt with a goal of further improving our creditworthiness.”