Pattern Energy Plans $269M NM Purchase
- Jul 06, 2016
Clovis, N.M.—San Francisco-based Pattern Energy Group has agreed to acquire interests in the 324-megawatt Broadview wind power facility outside Clovis, N.M., and an independent 35-mile transmission line for $269 million when the wind farm begins commercial operations next year.
Pattern Energy will acquire the interests from its sister company Pattern Energy Group LP, a leading global power developer which operates as Pattern Development and has an extensive development pipeline. Pattern Energy has the right to make the first offers on Pattern Development’s projects. Pattern Development has closed financing and is beginning construction on Broadview, which is expected to begin operating in early 2017.
“We identified this opportunity earlier this year, as a transaction we would likely commit to acquire when it reached COD,” Mike Garland, Pattern Energy president & CEO, said in a prepared statement. “We can meet the funding requirements for the acquisition with a portion of our currently available cash and liquidity and from new project financing facilities.”
Following the acquisition, based on its initial cash flow share of 84 percent in Broadview, Pattern Energy will retain an owned interest of 272 MW at Broadview. The company said its commitment to own and operate the facility was a core component of securing high-quality institutional equity investors for the project financing.
Pattern Energy said it will fund the cash purchase price for its interest in the project, including the 345 kV Western Interconnect transmission line, with available corporate liquidity and up to $160 million of long-term project holding company debt financing commitments.
Broadview has entered into two 20-year power purchase agreements with Southern California Edison for sale of 100 percent of the output. The wind farm will be connected to the new, privately developed transmission line which will deliver the output to California. It will consist of 141 Siemens 2.3 MW wind turbines and will have the capacity to generate 324 MW of energy, the power equivalent to the annual energy usage of approximately 180,000 California homes, according to Pattern Energy.
“This world-class wind project will deliver attractively-priced power directly into the California market under two 20-year contracts with Southern California Edison,” Garland said. “Broadview is a terrific addition to the company; representing a 12 percent increase to our current portfolio’s owned capacity and a material accretive increase in our cash available for distribution.”
Pattern Energy, an independent power company listed on both the NASDAQ Global Select Market and Toronto Stock Exchange, has a portfolio of 17 wind power facilities, including one it has agreed to acquire. To date, it has a total owned interest in facilities providing 2,554 MW in the United States, Canada and Chile.