Pattern Energy closes sale of minority interest in 270-MW Ontario wind farm

By S&P Global
January 10th, 2019

Pattern Energy Group Inc. closed the sale of its 33.33% share in the K2 wind project in Ontario for C$216 million, or US$160 million.

A consortium of investors led by Axium Infrastructure Inc. bought the 90-MW stake in the 270-MW facility on Dec. 31, 2018, adding to its existing 33.34% interest. The consortium is composed of Axium Infrastructure, Alberta Teachers' Retirement Fund Board and Manulife Financial Corp.

The K2 facility entered commercial operations in May 2015. It operates under a 20-year contract with Ontario's Independent Electricity System Operator.

"The sale of K2 at a 15.0x ten-year average [cash available for distribution] multiple demonstrates the intrinsic value of our wind power assets and highlights our ability to selectively recycle assets in order to redeploy capital into more accretive opportunities," Pattern Energy CEO Mike Garland said in a Jan. 9 release.

In November 2018, Pattern Energy and Capital Power Corp. agreed to sell their respective ownership interests in the wind facility to the investors for a total of C$432 million.

Pattern Energy will record a pretax gain of approximately US$71 million on the sale and continue as operator of the facility.