PEGI acquires two wind projects for US$269 Million in New Mexico

PEGI (Pattern Energy Group Inc.) announced that it has acquired interests in the two wind projects for $269 million in New Mexico. The two wind projects comprise to 324 MW Broadview Wind power facilities  and associated independent 35-mile 345 kV Western Interconnect transmission line. Pattern Energy acquired Broadview and Western Interconnect for $269 million, which consisted of cash consideration of $215 million and an assumed project loan of $54 million secured by Western Interconnect.

Broadview and Western Interconnect have completed construction and commenced commercial operation. All of Pattern Energy’s 18 wind power facilities are now fully operational, with total operational owned capacity of 2,644 MW.

Pattern Energy expects Broadview and Western Interconnect to generate cash available for distribution of approximately $18 million in 2018, increasing each year by approximately $2.5 million per year generating an average of $23 million per year in CAFD over the five-year period starting in 2018, which results in a CAFD multiple of 9.3x, after taking into consideration the Western Interconnect loan.

Broadview consists of 141 Siemens 2.3 MW wind turbines and has the capacity to generate 324 MW of energy. Broadview is limited to 297 MW of injection capacity at Broadview’s transmission interconnection point.

Broadview has entered into two 20-year PPA with Southern California Edison (SCE), which has a BBB+/A2 credit rating, for sale of 100 % of the output, up to a total of 297 MW, which has been factored into Broadview’s economics.

Image Source: Pattern Energy