Pattern Energy Group Inc. has committed to acquire a 90 MW interest in the 180 MW Armow Wind power facility, located in Ontario, from Pattern Energy Group LP (Pattern Development).
Pattern Energy will acquire the interest in the project for a total cash funding commitment of approximately $132 million. The acquisition will be funded with available liquidity and is expected to close within 45 days. The company announced in August that it was in discussions for acquiring the 90 MW interest.
Armow Wind will be jointly owned by Pattern Energy and Samsung Renewable Energy Inc. The facility reached commercial operations in December 2015 and operates under a 20-year power purchase agreement with the Ontario Independent Electricity System Operator. Situated in Kincardine, the wind farm consists of 91 Siemens 2.3 MW turbines and has been operational for roughly nine months.
Pattern Energy has rights of first offer to Pattern Development’s project development pipeline, which includes approximately 5,900 MW of wind and solar projects.
Pattern Energy’s conflicts committee of the board of directors – which is made up entirely of independent directors – reviewed and recommended the terms of the acquisition for approval by the board. The conflicts committee was advised on financial matters by Evercore Group LLC, which also provided a fairness opinion, and was advised on legal matters by Davis Polk & Wardwell LLP.
The acquisition will increase Pattern Energy’s portfolio to 18 wind power facilities, including two it has agreed to acquire.