Innergex closes acquisition of stake in 590 MW wind portfolio from TransCanada

Innergex Renewable Energy Inc. has announced the completion of the acquisition of TransCanada’s 62% interest in five wind farms in the Gaspé peninsula in Quebec known as Baie-des-Sables, Carleton, GrosMorne, L’Anse-à-Valleau and Montagne Sèche.

Innergex has also acquired TransCanada's 50% interest in the operating entities of the five wind farms. The company has paid a total consideration of approximately CAD620 million (US$473.0 million) after adjustment for distributions received by TransCanada since 1 July 2018.

Innergex already owned the remaining interests in both the wind farms and their respective operating entities.

Concurrent with the closing of the acquisition, Innergex has obtained two short-term credit facilities to cover the purchase price and transaction costs in its entirety. One of these facilities is a one-year term non-recourse credit facility of CAD400 million (US$305.2 million), which the company intends to repay from the proceeds of a non-recourse long-term financing. Discussions with long-term lenders are at an advanced stage and closing of the non-recourse long-term financing of the projects is expected in the coming months.

The other short-term credit facility is a one-year term credit facility of CAD228 million (US$174.0 million) to be reimbursed through the strategic divestment of selected assets. The timing of such sales is subject to prevailing market conditions but are expected to be completed within a year.