Pattern Energy Group will acquire two wind power projects, Grand Renewable and Panhandle 2, from its majority shareholder, Pattern Energy Group LP (Pattern Development), for total cash consideration of USD 202.4M.
Once completed, the acquisition will add 214MW to Pattern Energy’s net capacity, increasing its portfolio to 1,255MW, an increase of 21%. The initial acquisitions are part of a series of anticipated transactions with Pattern Development that are consistent with Pattern Energy’s growth plan to achieve its targeted 8–10% average annual increase in cash available for distribution (CAFD) per share. The acquisitions will be funded from available cash and credit facilities.
Grand Renewable is a 149MW project located in Haldimand County, Ontario, that is being built with 67 Siemens 2.3MW wind turbines. Construction of the project began in September 2013 and scheduled for completion and commercial operation in the fourth quarter of 2014. The electricity from Grand Renewable is committed to the Ontario Power Authority (OPA) under a 20-year power purchase agreement.
Panhandle 2, a 182MW wind project being built in Carson County, Texas, consists of 79 Siemens 2.3MW wind turbines. Approx. 80% of the expected output is contracted with an affiliate of Morgan Stanley under a long-term energy price hedge.
