Infigen Energy has sold its US wind business to Primary Wind Power, LLC to ArcLight Capital Partners for approximately US $272.5 million.
Completion of the wind transaction is subject to various closing conditions, but it is expected to close by October 2015.
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.
Infigen's Managing Director, Miles George, stated:
"Infigen has been assessing various options to improve the capital structure of our business and unlock security holder value for quite some time. The sale of our US wind business is consistent with that strategic objective, represents fair value for security holders having regard to the cash flow profile of the US assets and is a significant milestone on the path to improving the future prospects for Infigen and its security holders."
Infigen US President David Smith, commented:
"This creates a growth opportunity for our wind business in the US. We are pleased to join forces with ArcLight to efficiently and cost-effectively manage our existing assets while evaluating opportunities for growing the portfolio."
Dan Revers, Managing Partner of ArcLight Capital Partners, added:
"ArcLight formed Primary Wind to acquire Infigen's US Wind business, including the management and operations team. The US renewable power industry has undergone dramatic growth in recent years and the Primary Wind platform is poised to be a consolidator in this evolving industry."