NextEra Energy Partners announced this Monday it has entered into a definitive agreement to acquire nearly 400 megawatts of wind assets; located in California and New Hampshire, from Brookfield Renewable, a global owner and operator of renewable power assets. Purchase price was $733 million.
Firstly, the acquisition was for a total of 391 MW of four operating wind assets; which are all located in markets with significant long-term renewables demand. On the other hand, the $733 million base purchase price is still subject to closing adjustments.
Secondly, the assets are the Alta Wind III, with a total capacity of 150 MW; the Windstar project, with 120 MW; and the Coram, with a total capacity of 22 MW, all of them located in California. And the Granite project, with 99 MW of capacity, located in New Hampshire.
Thirdly, NextEra Energy Partners plans to fund the transaction with a combination of undrawn funds remaining from the 2020 convertible equity portfolio financing and existing debt capacity.
Moreover, the company expects that the assets purchased contribute to an adjusted EBITDA and CAFD of $63 to $70 million; each on a five-year average run-rate basis, beginning Dec. 31, 2021.
Also recommended for you: Vortus Investment Advisors partners with Stateline Operating to develop upstream assets in the Delaware Basin. Click Here.
NextEra Energy Partners finds growth in its financing structures
Nevertheless, the transaction is still subject to approval from the Federal Energy Regulatory Commission and New Hampshire Site Evaluation Committee. Consequently, the company expects to complete the acquisition process around the third quarter of the year.
In addition, Jim Robo, chairman and CEO of NextEra Energy Partners, said. “This portfolio is an attractive acquisition for NextEra Energy Partners; is also supported by our ability to leverage NextEra Energy Resources’ best-in-class operating platform to reduce costs and create value for LP unitholders.”
He also remarked. “The transaction also provides an accretive investment opportunity to deploy the proceeds from the second draw of our 2020 convertible equity portfolio financing; also, illustrating NextEra Energy Partners’ ability to leverage its value-enhancing financing structures to support long-term growth.”
Finally, he concluded. “Our company remains on a trajectory to grow our LP distributions per unit by 12% to 15% through 2024; and also, in our view, the partnership has never been better positioned to deliver unitholder value going forward.”
