Pattern Energy Group Inc. has completed the acquisition of a 90 MW interest in the 179 MW Armow Wind power facility in Ontario from Pattern Energy Group LP for a total cash consideration of approximately $133 million.
According to Pattern Energy, the total cash consideration represents a 9.5-10.5x multiple on the five-year average annual cash available for distribution contribution from the project. Pattern Energy says the purchase price was funded from cash available and draws under the company’s revolving credit facility on Oct. 17.
Subsequent to the transaction, $308 million remains available under the revolving credit facility, says the company.
“The acquisition of Armow Wind is immediately accretive, providing us with increased cashflow and growing the portfolio to 2.6 GW of owned capacity,” says Mike Garland, president and CEO of Pattern Energy. “With an identified ROFO list of 942 MW of wind and solar projects – and a right of first offer on Pattern Development’s pipeline of 5,900 MW of development projects – we are confident in expanding our growth outlook to achieve our 5,000 MW target by the end of 2019.”
Located in Kincardine, Ontario, Armow Wind consists of 91 Siemens 2.3 MW wind turbines and is jointly owned by Pattern Energy and Samsung Renewable Energy Inc. The facility reached commercial operation in December 2015 and operates under a 20-year power purchase agreement with the Independent Electricity System Operator in Ontario.