Innergex Renewable Energy (Innergex) has completed the previously announced 62% stake acquisition of Cartier wind farms, with 590MW of total capacity, from TransCanada.
Innergex has paid TransCanada C$620 ($472m) for the stake as well as 50% stake in the wind farms’ operating entities. Cartier wind farms are located in the Gaspé Peninsula in Quebec and include Baie-des-Sables, Carleton, Gros- Morne, L’Anse-à-Valleau and Montagne Sèche wind farms.
The wind farms generate nearly 1780GWh of clean power annually, which could power about 80,900 Canadian homes. Power generated from the wind farms will be sold under existing power purchase agreements with Hydro-Québec, for initial terms of 20 years, ending between 2026 and 2032.
Innergex president and CEO Michel Letellier said: “I am pleased to announce we have finalized the acquisition of Cartier Wind Farms and Cartier Operating Entities.
“We have always considered these assets as an integral part of our family, Baie-des-Sables being the first of many wind farms introduced to our portfolio of assets. By leveraging the expertise and knowledge of Cartier staff, we will continue to improve our wind operations and pursue our growth strategy.
“Our discussions with financial institutions to put in place a non-recourse long-term financing at the projects level look promising and could be above the C$400m ($304.5m) that we first expected to obtain. We anticipate closing this financing in the coming months.”
Concurrent with the closing of the transaction, Innergex has secured two short-term credit facilities to support the cover the price and the transaction costs in its entirety.
The company has secured a one-year term non-recourse credit facility of C$400m ($304.5m) and it plans to repay from the proceeds of a non-recourse long-term financing at projects level based on the useful life of the assets.
A few days ago, Innergex had acquired a prospective 260MW Hillcrest solar plant from Open Road Renewables and MAP Renewable Energy.
The solar plant is expected to begin commercial operations between 2020 and 2021. Innergex had said that it was in discussions to sell power from the plant through a long-term power purchase agreement.