Pattern Energy Group (NASDAQ: PEGI) (TSX:PEG) (Pattern Energy) announced Oct. 18 that it has completed the acquisition of a 90 MW interest in the 179 MW Armow Wind power facility in Ontario, Canada from an affiliate, Pattern Energy Group LP (Pattern Development).
Located in Kincardine, Ontario, Armow Wind consists of 91 Siemens 2.3 MW wind turbines and is jointly owned by Pattern Energy and Samsung Renewable Energy. The facility reached commercial operation in December 2015 and operates under a 20-year power purchase agreement with the Independent Electricity System Operator (IESO) in Ontario.
Pattern Energy acquired the interest in Armow Wind for a total cash consideration of approximately US $133m, representing a 9.5-10.5x multiple on the 5-year average annual cash available for distribution (CAFD) contribution from the project.
The purchase price was funded from cash available and draws under the company’s revolving credit facility on Oct. 17, 2016. Subsequent to the transaction, $308m remains available under the revolving credit facility.
“The acquisition of Armow Wind is immediately accretive, providing us with increased cash flow and growing the portfolio to 2.6 GW of owned capacity,” said Pattern Energy President and CEO Mike Garland. “With an identified ROFO list of 942 MW of wind and solar projects – and a right of first offer on Pattern Development’s pipeline of 5,900 MW of development projects – we are confident in expanding our growth outlook to achieve our 5,000 MW target by the end of 2019.”