ArcLight Capital Partners has closed of the transaction between its newly formed portfolio company, Leeward Renewable Energy and Infigen Energy to acquire Infigen's U.S. wind assets.
The transaction has been closed for a total consideration of US$272.5 million
Infigen's US wind business comprises Class B equity interests in 18 US wind farms with a total installed capacity of approximately 1,557 MW, of which Infigen's interests comprise 1,089 MW on an economic interest basis. In addition, Infigen has an investment in Class A cash flow interests in nine of those wind farms and owns a US based asset management business.
Australia-headquartered Infigen will use the proceeds of sale to reduce its Global Facility debt and place the company's retained Australian business on a stronger financial footing. The company also recently announced its intention to sell its US solar development pipeline to an unnamed global solar company for US $37.9 million.
Latham & Watkins LLP served as legal counsel and Ernst & Young LLP provided tax and accounting advice to ArcLight on the transaction. UBS Investment Bank was exclusive financial adviser and Skadden, Arps, Slate, Meagher & Flom LLP was legal counsel for Infigen on the transaction.
Leeward Renewable Energy President David Smith stated:
"This creates a growth opportunity for our wind business in the U.S. We are pleased to join forces with ArcLight to efficiently and cost-effectively manage our existing assets while evaluating opportunities for growth."
Dan Revers, Managing Partner of ArcLight Capital Partners, added:
"ArcLight established Leeward Renewable Energy to acquire all of Infigen's operating U.S wind business, including its capable management and operations team, and to serve as a platform for future acquisitions in the renewable energy sector," said Dan Revers, Managing Partner of ArcLight Capital Partners.