Pattern Energy Group Inc. has closed the previously announced acquisition of two operational wind power facilities totaling 351 MW from Wind Capital Group, LLC (WCG), the US wind company owned by NTR.
The final purchase price has been US$242 million plus assumed net debt of US$102 million.
The acquisition includes ownership interests in the 201 MW Post Rock Wind facility in Kansas, and the 150 MW Lost Creek Wind facility in Missouri. Pattern Energy expects to maintain a total combined owned interest of 270 MW in these two facilities.
Post Rock Wind and Lost Creek Wind, which have been operational for an average of approximately four years, are fully contracted under power purchase agreements with highly credit-worthy counterparties. The Post Rock Wind facility in Kansas has a long-term contract with Westar, which has a BBB+ credit rating. The Lost Creek Wind facility in Missouri has a long-term contract with Associated Electric Cooperative Incorporated, which has an AA credit rating. The average remaining life of the contracts is 16 years.
The acquisition of these two facilities expands Pattern Energy’s operations into two new U.S. states, Kansas and Missouri.
In mid November we reported that NTR had plans to sell WCG' wind projects. At that time Chief Executive of NTR plc Rosheen McGuckian stated:
NTR’s review, which was undertaken by independent advisors Marathon Capital LLC, has indicated that the market for selling US operational wind projects is very favourable and that the profile and quality of the two wind projects should be attractive to a wide range of potential purchasers. Taking these factors into consideration, the Board has decided that launching a sale process is an appropriate strategy to optimise the value inherent in these projects.
We have recently reported about several wind projects globally: