Korean investors buys equity interest in 852 MW US wind projects
Korea Hydro & Nuclear Power Co., Ltd. (KHNP), Alpha Asset Management, Sprott Korea Investment, Hana Financial Investment, and Korea Investment & Securities (KIS), a group of Korean infrastructure investors, have signed definitive agreements to acquire a 49.9% equity interest in a portfolio of wind generating assets in the United States.
The equity interests will be acquired, subject to satisfaction of customary closing conditions, from Brookfield Renewable and Invenergy LLC in a transaction with an implied aggregate enterprise value of approximately US$1.5 billion. Brookfield will continue to hold a 50.1% equity interest in the portfolio. The transaction is expected to close in the fourth quarter of 2020.
The portfolio has an installed capacity of 852 MW and is comprised of four operating wind assets:
- Bishop Hill, located in Illinois, with an installed capacity of 218 MW;
- California Ridge, located in Illinois, with an installed capacity of 226 MW;
- Prairie Breeze, located in Nebraska, with an installed capacity of 201 MW, and
- Rattlesnake, located in Texas, with an installed capacity of 207 MW.
The portfolio is supported by long-term power purchase agreements or hedges with investment-grade counterparties with over 12 years of aggregate average remaining capacity-weighted contract life. The portfolio has long term service agreements with General Electric International, Inc. that cover turbine operations and maintenance as well as other balance of plant services.
CIBC Capital Markets acted as exclusive financial advisor and Lee & Ko LLC and White & Case LLP acted as legal counsel to the consortium.
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