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United States : APCo signs DEAL to buy remaining 40% of 400 MW US Wind Power Portfolio in US
Publish Date : 03-Dec-2013
Algonquin Power & Utilities Corp. declared that a subsidiary of APUC's renewable power generation business Algonquin Power Co. (APCo.) has signed an agreement to buy the remaining 40% of the 400 MW wind power portfolio in the United States from Gamesa Wind US, LLC for total consideration of about US$117 million.
APUC now has a 60% controlling interest in the Projects originally acquired through a newly formed partnership whose original members comprised APCo, Gamesa and certain tax equity investors. The 400 MW wind portfolio includes three facilities, Minonk (200MW), Senate (150MW), and Sandy Ridge (50MW) located in the states of Illinois, Texas, and Pennsylvania, respectively.
APUC is the majority owner and manager of the Projects since 2012 when commercial operation was achieved. Gamesa will continue to provide operations, warranty and maintenance services for the wind turbines and balance of plant facilities under 20 year contracts.
Funding of the acquisition will be consistent with APUC's targeted investment grade consolidated capital structure of about 50% equity, 50% debt. The acquisition will close early in 2014 after regulatory approvals.
"The U.S. power markets provide tremendous opportunities for further growth in our power generation portfolio as our investment in these wind farms has demonstrated", said Chief Executive Officer Ian Robertson. "We have been pleased with the performance of these assets over the past year and the acquisition of the balance of these three wind generating facilities adds additional accretive, low risk earnings and cash flow to APUC".
