Project expected to provide approximately $28 million in annual cash available for
distribution
SAN FRANCISCO, June 30, 2016 /PRNewswire/ -- Pattern Energy
Group Inc. (NASDAQ: PEGI) (TSX: PEG) ("Pattern Energy") today
announced it has committed to acquire interests in the 324 megawatt
("MW") Broadview Wind power facility ("Broadview") and associated independent 35-mile
345 kV Western Interconnect transmission line from Pattern Energy
Group LP ("Pattern Development") for $269
million at commencement of commercial operations ("COD").
Pattern Development has closed financing and is beginning
construction on Broadview, which
is located 30 miles north of Clovis, New
Mexico.
Highlights
- Pattern Energy has committed to acquire Broadview, and the associated transmission
line, for $269 million at
commencement of commercial operations
- Pattern Energy has all the capital required to fund the
transaction with currently available liquidity and new project
holding company commitments from debt financing facilities
- Broadview has closed
construction and term financing and the COD of the project is
expected in early 2017
- Pattern Energy expects Broadview to generate cash available for
distribution ("CAFD") of approximately $28
million per year based on a five-year average run rate,
before financing costs, which results in a pre-financing CAFD
multiple of 9.6x for Pattern Energy's owned capacity
"This world-class wind project will deliver attractively-priced
power directly into the California
market under two 20-year contracts with Southern California
Edison," said Mike Garland,
President and CEO of Pattern Energy. "Broadview is a terrific addition to the
Company; representing a twelve percent increase to our current
portfolio's owned capacity and a material, accretive increase in
our cash available for distribution. We identified this opportunity
earlier this year, as a transaction we would likely commit to
acquire when it reached COD. We can meet the funding requirements
for the acquisition with a portion of our currently available cash
and liquidity and from new project financing facilities. Our
commitment is to provide dividends, especially in uncertain
markets, and this project supports that commitment."
Pattern Energy has committed to acquire from Pattern Development
an 84% initial cash flow interest in Broadview and a 99% ownership interest in the
Western Interconnect transmission line for a total cash purchase
price of $269 million, which will be
funded at the commencement of commercial operations in less than a
year. Institutional equity investors have committed to acquire from
Pattern Development a 16% initial cash flow interest in, and a 99%
initial taxable income allocation from, Broadview, which will also be funded following
the commencement of commercial operations. Following the
acquisition, based on its initial cash flow share, Pattern Energy
will retain an owned interest of 272 MW in Broadview. Pattern Energy's commitment to own
and operate the facility was a core component of securing
high-quality institutional equity investors for the project
financing.
Pattern Energy will fund the cash purchase price for its
interest in the project, including the associated transmission
line, at the commencement of commercial operations in less than a
year with currently available corporate liquidity and up to
$160 million of long-term project
holding company debt financing commitments.
The Broadview power facility
will consist of 141 Siemens 2.3 MW wind turbines and has the
capacity to generate 324 MW of energy, the power equivalent to the
annual energy usage of approximately 180,000 California homes. Broadview will be limited to 297 MW of
injection capacity at the project's transmission interconnection
point.
Broadview has entered into two
20-year power purchase agreements ("PPAs") with Southern California
Edison ("SCE"), which has a BBB+/A2 credit rating, for sale of 100
percent of its output, up to a total of 297 MW, which has been
factored into the project's economics.
Broadview will interconnect to
the new, privately-developed Western Interconnect transmission
project, which will deliver the output to the California
Independent System Operator ("CAISO"). Western Interconnect
is a 345 kV transmission line, approximately 35 miles in length,
which will be 99% owned and operated by Pattern Energy. The
combined cash available for distribution from the project and
transmission line, before any financing costs, is expected to be
approximately $28 million annually
based on a five-year average run rate.
About Pattern Energy
Pattern Energy Group Inc. is an
independent power company listed on The NASDAQ Global Select Market
and Toronto Stock Exchange. Pattern Energy has a portfolio of 17
wind power facilities, including one it has agreed to acquire, with
a total owned interest of 2,554 MW in the
United States, Canada and
Chile that use proven,
best-in-class technology. Pattern Energy's wind power facilities
generate stable long-term cash flows in attractive markets and
provide a solid foundation for the continued growth of the
business. For more information, visit www.patternenergy.com.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements contained in this press
release constitute "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of Canadian
securities laws, including statements regarding the ability to
consummate the acquisition of Broadview and/or Western Interconnect, the COD
date of Broadview, Pattern
Energy's estimated funding date of Broadview, the annual CAFD generated by
Broadview, Pattern Energy's
funding plan through available liquidity and/or drawing upon
project holding company debt financing commitments, the generation
capacity of Broadview, and power
equivalent annual energy usage of California homes such capacity represents.
These forward-looking statements represent Pattern Energy's
expectations or beliefs concerning future events, and it is
possible that the results described in this press release will not
be achieved. These forward-looking statements are subject to risks,
uncertainties and other factors, many of which are outside of
Pattern Energy's control, which could cause actual results to
differ materially from the results discussed in the forward-looking
statements.
Any forward-looking statement speaks only as of the date on
which it is made, and, except as required by law, Pattern Energy
does not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise. New factors emerge from time to time,
and it is not possible for Pattern Energy to predict all such
factors. When considering these forward-looking statements, you
should keep in mind the risk factors and other cautionary
statements in Pattern Energy's annual report on Form 10-K and any
quarterly reports on Form 10-Q. The risk factors and other factors
noted therein could cause actual events or Pattern Energy's actual
results to differ materially from those contained in any
forward-looking statement.
These forward-looking measures of annual CAFD and pre-financing
CAFD multiple are non-GAAP measure that cannot be reconciled to net
cash provided by operating activities as the most directly
comparable GAAP financial measure without unreasonable effort
primarily because of the uncertainties involved in estimating
forward looking changes in working capital balances which are added
to earnings to arrive at cash provided by operations and subtracted
therefrom to arrive at CAFD.
Contacts:
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Media
Relations
Matt
Dallas
917-363-1333
matt.dallas@patternenergy.com
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Investor
Relations
Ross
Marshall
416-526-1563
ross.marshall@loderockadvisors.com
|
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SOURCE Pattern Energy Group Inc.