Pattern Energy to acquire Henvey Inlet and Grady Wind Facilities
Pattern Energy Group announced agreements to acquire ownership interests in two operating wind power facilities, the Henvey Inlet Wind facility in Ontario and the Grady Wind facility in New Mexico. The company has also entered into an agreement for a $260M private placement of perpetual preferred stock with certain institutional investors and intends to use a portion of the net proceeds to finance the two acquisitions. Pattern Energy is committing to pay C$242.4M at closing to acquire 100% of PEG LP's 50% equity ownership interest (equating to a 50% owned interest or 150 MW of owned capacity) in the 300 MW Henvey Inlet Wind facility. Following purchase price adjustments to be made at term conversion, the estimated economic cost to the company for such interest will be C$252M. Nigig Power owns the remaining 50% interest in the facility. Henvey Inlet Wind is located on the northeast shore of the Georgian Bay in Ontario and commenced commercial operations in September 2019. The facility utilizes 87 Vestas 3.45 MW turbines and has a 20-year PPA with the Independent Electricity System Operator for 100% of its production. The acquisition is expected to close in the next 15 days. As part of the acquisition, Pattern Energy is purchasing from PEG LP a C$97M loan outstanding with Nigig Power. The loan was made to Nigig Power to allow the partner to fund a portion of the construction cost and is expected to be repaid in less than 12 months. Prior to the refinancing, Pattern Energy will receive all distributions from Nigig Power's ownership interest until the loan is repaid. The loan pays an interest rate of 10% per annum. Pattern Energy acquired 51% of Pattern Development's Class B member interest in the 220 MW Grady Wind facility for $99.45M for an owned interest of 101 MW. Grady Wind is located in Curry County, New Mexico and commenced commercial operations in the third quarter of 2019. The Public Sector Pension Investment Board is acquiring the remaining Class B member interest. The facility utilizes 84 Siemens Gamesa 2.625 MW turbines and has a 25-year PPA with Sacramento Municipal Utility District for 100% of its production up to 200 MW.