Pattern Energy To Buy 2 Wind Power Projects From Pattern Development

(RTTNews) - Pattern Energy Group Inc. (PEGI, PEG.TO) reported agreeing to acquire two wind power projects from its majority shareholder, Pattern Energy Group LP or "Pattern Development", for $202.4 million cash. The acquisition adds 214 MW in net capacity after the completion, increasing Pattern Energy's portfolio to 1,255 MW; initial acquisitions in a series of anticipated transactions with Pattern Development that are consistent with Pattern Energy's growth plan to achieve its targeted 8-10% average annual increase in cash available for distribution per share. The acquisitions are funded from available cash and credit facilities.

Grand Renewable is a 149 MW project located in Haldimand County, Ontario, that is being built with 67 Siemens 2.3 MW wind turbines. The project construction began in September 2013 concurrently with the closing of a non-recourse construction and term loan from a syndicate of leading project financing banks. It is slated to reach construction completion and commercial operation in the fourth quarter of 2014. Grand Renewable is owned 45% by Pattern Energy, 45% by Samsung Renewable Energy, Inc. and 10% by the Six Nations of the Grand River. As part of the long-term agreement with the project partnership, Pattern Energy would be the operator for the project. Pattern Energy paid $79.5 million for its 45% stake from its unrestricted available cash.

Meanewhile, Panhandle 2, a 182 MW wind project, is being built in Carson County, Texas, and consists of 79 Siemens 2.3 MW wind turbines. Pattern Energy, together with three institutional tax equity investors, would buy Panhandle 2 upon closing of construction, which is expected to occur in the fourth quarter of 2014.