Pattern Energy enters agreement to sell stake in 270 MW wind project

Pattern Energy Group Inc. has announced it has entered into an agreement for the sale of the company’s 90 MW minority owned interest in the K2 Wind power facility in Ontario (Canada) for a purchase price of CAD216.0 (US$166 million), to a consortium of investors led by Axium Infrastructure.

The company expects to record a pretax gain in the range of approximately US$65 million to US$69 million on the sale, subject to fourth quarter results. Pattern Energy is also entitled to receive the cash flows from the facility through the end of calendar 2018.

K2 is a 270 MW wind power facility located in the Township of Ashfield-Colborne-Wawanosh and commenced commercial operations in June 2015. The facility is a joint venture between Pattern Energy, an Axium-led consortium and Capital Power Corporation. Capital Power Corporation has also agreed to sell its interest in the facility to the Axium Consortium under the same agreement.

Pattern Energy intends to use the net proceeds from the sale for general corporate purposes, which may include: funding investments, acquisitions or the repayment of indebtedness.

The transaction is expected to close on, or around, December 31, 2018, subject to customary closing conditions.