Australian developer Infigen Energy has closed the previously announced sale of its U.S. wind business to a subsidiary of ArcLight Capital Partners.
Leeward Renewable Energy LLC, a newly formed portfolio company, has acquired Infigen's equity interest in nearly 1.1 GW across 18 U.S. wind farms. In addition, the acquisition includes Infigen's U.S.-based asset management and operations business.
‘ArcLight established Leeward Renewable Energy to acquire all of Infigen's operating U.S. wind business, including its capable management and operations team, and to serve as a platform for future acquisitions in the renewable energy sector,’ says Dan Revers, managing partner of ArcLight Capital Partners.
David Smith, president of Leeward Renewable Energy, adds, ‘This [aquisition] creates a growth opportunity for our wind business in the U.S. We are pleased to join forces with ArcLight to efficiently and cost-effectively manage our existing assets while evaluating opportunities for growth.’
‘Infigen has been assessing various options to improve the capital structure of our business and unlock security holder value for quite some time,’ Miles George, Infigen's managing director, explained in July. ‘The sale of our U.S. wind business is consistent with that strategic objective, represents fair value for security holders having regard to the cashflow profile of the U.S. assets, and is a significant milestone on the path to improving the future prospects for Infigen and its security holders.’
Latham & Watkins LLP served as legal counsel, and Ernst & Young LLP provided tax and accounting advice to ArcLight on the transaction. UBS Investment Bank was exclusive financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP was legal counsel for Infigen on the transaction.