California-based wind developer Pattern Energy Group Inc. plans to launch an initial public offering (IPO) of 16 million shares. The company says it expects to raise about $290 million from the IPO, with each share of Class A common stock to be priced between $19.00 and $21.00.
According to a January filing with the U.S. Securities and Exchange Commission (SEC), Pattern Energy Group has interests in eight wind projects throughout the U.S., Canada and Chile. The wind farms include six operating and two construction projects.
The company's operating wind farms, representing a total owned capacity of 1,041 MW, include the following: the 283 MW Gulf Wind project in Texas, 101 MW Hatchet Ridge project in California, 138 MW St. Joseph project in Manitoba, 152 MW Spring Valley project in Nevada,101 MW Santa Isabel project in Puerto Rico, and the Ocotillo project in California (the company expects the remaining 42 MW of the 265 MW Ocotillo project to enter commercial operation by year-end).
Meanwhile, the two wind farms under construction include the 270 MW South Kent project in Ontario and 115 MW El Arrayan project in Chile – both of which Pattern expects to commence commercial operations by the second quarter of next year.
Pattern Energy Group plans to use the $290 million it expects to raise to pay down debt and to transfer the ownership of the wind farms into the public entity's portfolio, as well as for general corporate purposes.
BMO Capital Markets, RBC Capital Markets and Morgan Stanley will act as joint book-running managers for the offering; BofA Merrill Lynch will act as bookrunner; and CIBC, Scotiabank, Wells Fargo Securities, Canaccord Genuity and Raymond James will act as co-managers.