Finavera Wind Energy Inc. has signed an agreement to sell a 300 MW British Columbia wind project portfolio to Pattern Renewable Holdings Canada ULC, a subsidiary of Pattern Energy Group LP, for C$40 million.
Finavera will maintain a 10% interest in the 105 MW Cloosh Valley Wind Project and is expecting an additional C$9.3 million payment from the project in 2013.
Under the terms of the agreement, Pattern has agreed to refinance up to C$9 million of corporate debt, fund certain development costs going forward and provide a further debt facility to the company at a rate of 10%, all of which will be applied against the purchase price at closing of the acquisition of the projects.
Post-acquisition, Pattern has also committed to development spending on the near-term projects. Approximately C$11 million will be paid to Finavera upon shareholder approval. The agreement is subject to approval from shareholders and the TSX Venture Exchange.