NextEra Energy Partners, LP acquires 299 MW of contracted renewables projects

NextEra Energy Partners LP has recently announced that it has entered into an agreement with a subsidiary of its sponsor, NextEra Energy Resources to acquire the Seiling I & II Wind Energy Centers, a combined 299.2 MW wind project located in Dewey and Woodward, Oklahoma (USA).

With this acquisition NextEra Energy Partners' portfolio of contracted renewable energy projects will increase till 2,509 MW.

NextEra Energy Partners expects to complete the acquisition in the first quarter of 2016 for a total consideration of approximately US$323 million, plus the assumption of approximately $200 million in tax equity financing.

The partnership expects to fund the transaction, in part, through the net proceeds of an issuance of common units, with the balance of the purchase price expected to be funded through a draw under a subsidiary of NextEra Energy Partners' revolving credit facility.

Jim Robo,  chairman and CEO of NextEra Energy Inc, said:

"We are pleased to announce the acquisition of these two high-quality wind energy centers, both of which are fully contracted with long-term power purchase contracts in place with strong creditworthy counterparties. This acquisition represents yet another example of the strength of the pipeline of organic growth opportunities that our sponsor, NextEra Energy Resources, provides and positions us to advance our growth strategy and deliver unitholder distributions consistent with the expectations we've outlined."

Only one day after the announcement  NextEra Energy Partners announced the pricing of a registered underwritten offering of 9,700,000 common units representing limited partner interests in NextEra Energy Partners, LP at a public offering price of US$26.00 per common unit.

It is therefore understood that net proceeds from the public offer will be use in part for the acquisition of the Seiling I & II Wind Energy Centers.

Morgan Stanley is acting as sole bookrunner for the public offering.