The project, which was completed earlier this month and is now fully operational, is located approximately 400 km north of Santiago on the coast of Chile. At 115MW, El Arrayán Wind is the largest wind power facility in Chile and all of South America.
The transaction increases Pattern Energy's ownership in El Arrayán Wind to 70% with Antofagasta Minerals SA owning the remaining 30% minority stake. It adds 44 MW to the portfolio, bringing Pattern Energy's owned capacity to 1,479 MW.
Mike Garland, CEO of Pattern Energy, stated:
With this acquisition we are increasing our cash flow from the project while expanding our platform in the Chilean market which has a strong, stable economy and a growing demand for renewable resources. By harnessing Chile's strong coastal winds, El Arrayán will be the largest producer of wind power in South America, helping Chile meet its goal of generating 20% of its energy from renewable sources by 2025.
Pattern Energy paid a US$45.25 million purchase price to AEI from available cash on hand and assumed certain obligations, consisting principally of AEI's proportional share of project debt. As of May 31, 2014, AEI's proportional share of the US$224.8 million non-recourse project debt was US$87 million.
Pattern Energy operates the project, which sells approximately 70% of its output to Minera Los Pelambres through a long-term fixed-for-floating hedge. The project sells its remaining output into the Chilean spot market at the prevailing market price at the time of sale. In addition to its minority interest in the project, AMSA is the controlling party of Minera Los Pelambres,
El Arrayán connects to the Sistema Interconectado Central's 220kV transmission system. The project is located on approximately 15,320 acres of coastal land on a long-term lease with a single landowner.