Pattern Energy Group Inc. (NASDAQ: PEGI) (TSX: PEG) on Sept. 22 announced its commitment to acquire a 90-MW interest in the operating 180-MW Armow Wind power facility in Ontario, Canada, from Pattern Energy Group LP (known as “Pattern Development”).
Pattern Energy will acquire the interest in Armow Wind for a total cash funding commitment of approximately US$132 million. The acquisition will be funded with available liquidity and is expected to close within 45 days. The facility has been operational for approximately nine months. This deal:
- Adds 90 MW, expanding total owned capacity to 2,644 MW upon closing
- Increases portfolio to 18 wind power facilities, including two it has agreed to acquire
- Brings a 20-year power purchase agreement with the Ontario Independent Electricity System Operator (IESO)
“The commitment to acquire Armow Wind, on the heels of our successful equity offering last month, demonstrates our ability to use our available capital for accretive projects,” said Mike Garland, President and CEO of Pattern Energy. “We anticipate closing another acquisition from our identified ROFO list in the coming months. Looking ahead, our identified ROFO list includes 11 projects totaling 942 MW, providing clear visibility to 36% growth on our existing portfolio.”
Armow Wind will be jointly owned by Pattern Energy and Samsung Renewable Energy Inc. Located in Kincardine, Ontario, Armow Wind consists of 91 Siemens 2.3-MW wind turbines.
Pattern Energy has rights of first offer (ROFO) to Pattern Development’s project development pipeline, which includes approximately 5,900 MW of wind and solar projects.
Pattern Energy Group Inc. is an independent power company that has a portfolio of 18 wind power facilities, including two it has agreed to acquire, with a total owned interest of 2,644 MW in the United States, Canada and Chile.