US-based renewable energy company Pattern Energy Group has signed agreements to acquire ownership stakes in two operating windfarms located in Ontario and New Mexico.
The Henvey Inlet windfarm is located in Ontario, while the Grady windfarm is located in New Mexico.
Pattern Energy CEO Mike Garland said: “These acquisitions increase our portfolio by 13% to 4.4GW of operational capacity across 28 renewable energy facilities.
“The Henvey Inlet and Grady acquisitions are immediately accretive to CAFD per share with each facility characterised by strong cash flow profiles that are backed by long-term power contracts with investment-grade off-takers.
“The preferred stock offering enhances the company’s financial flexibility and demonstrates our ability to attract institutional capital into our business. The preferred security offers an attractive alternative equity funding source that is accretive to our common shareholders.”
Pattern Energy has also signed an agreement with certain institutional investors for a $260m private placement of perpetual preferred stock investors. It intends to use part of the proceeds to fund the acquisitions of these two wind facilities.
Pattern Energy has committed to pay C$242.4m ($183m) at closing to acquire 100% of PEG LP’s 50% equity ownership interest in the Henvey Inlet windfarm.
Henvey Inlet is a 300MW windfarm located on the northeast shore of the Georgian Bay in Ontario and entered into the operational phase in September 2019. Nigig Power owns the remaining 50% interest in the Henvey Inlet windfarm.
Equipped with 87 Vestas 3.45MW turbines, the facility has a 20-year PPA with the Independent Electricity System Operator for its full production. The deal is expected to close in the next 15 days.
Pattern Energy has also agreed to loan PEG C$97m ($73m) that is outstanding with Nigig Power, a subsidiary of the Henvey Inlet First Nation, which is a partner in the Henvey Inlet windfarm.
For the acquisition of 51% stake in Pattern Development’s Class B member interest in the 220MW Grady windfarm, Pattern Energy has committed to pay $99.45m for an owned interest of 101MW.
The remaining Class B member interest in the windfarm is acquired by the Public Sector Pension Investment Board (PSP Investments).
Located in Curry County, New Mexico, Grady Wind facility commenced its commercial operations in the third quarter of this year.
The facility, which is equipped with 84 Siemens Gamesa wind turbines, has a 25-year PPA with Sacramento Municipal Utility District for its full production up to 200MW.