SAN FRANCISCO, Aug. 14, 2017 /CNW/ -- Pattern Energy Group
Inc. (Nasdaq & TSX: PEGI) ("Pattern Energy" or the "Company"),
today announced it has completed the acquisition of a 51% interest
in the 179 MW Meikle Wind facility from Pattern Energy Group LP
("Pattern Development 1.0") for $68
million1, which represents a 10x multiple of the
five-year average cash available for distribution2
("CAFD"). The Public Sector Pension Investment Board ("PSP
Investments") acquired the remaining 49%.
"Completing the acquisition of Meikle Wind adds British Columbia's largest wind power facility
to our portfolio and is one of the first initiatives in our new
strategic relationship with PSP Investments," said Mike Garland, Chief Executive Officer of Pattern
Energy. "Meikle is an excellent addition to our portfolio,
providing a strong addition to our CAFD2 with a
long-term revenue stream from its 25-year PPA. PSP Investments'
acquisition of the remaining 49% stake in Meikle demonstrates their
confidence in our business model and investment decisions."
The purchase price of the Meikle Wind acquisition was funded
from available cash and draws under the Company's revolving credit
facility.
Meikle Wind commenced commercial operations in the first quarter
of 2017 and operates under a 25-year power purchase agreement with
BC Hydro, which has a AAA/Aaa credit rating.
Located in the Peace River Regional District of British Columbia, Canada, the 179 MW Meikle
Wind facility consists of 61 GE wind turbines, including 35 3.2 MW
turbines and 26 2.75 MW turbines.
About Pattern Energy
Pattern Energy Group Inc.
(Pattern Energy) is an independent power company listed on the
NASDAQ Global Select Market and Toronto Stock Exchange. Pattern
Energy has a portfolio of 20 wind power facilities, including one
project it has agreed to acquire, with a total owned interest of
2,736 MW in the United States,
Canada and Chile that use proven, best-in-class
technology. Pattern Energy's wind power facilities generate stable
long-term cash flows in attractive markets and provide a solid
foundation for the continued growth of the business. For more
information, visit www.patternenergy.com.
1)
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Based on a CAD to USD
exchange rate of $1.27
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2)
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This forward looking
measure of five-year average annual purchase price multiple of cash
available for distribution (CAFD) contribution from the Meikle Wind
facility is a non-GAAP measure that cannot be reconciled to net
cash provided by operating activities as the most directly
comparable GAAP financial measure without unreasonable effort
primarily because of the uncertainties involved in estimating
forward-looking changes in working capital balances which are added
to earnings to arrive at cash provided by operations and subtracted
therefrom to arrive at CAFD. A description of the adjustments to
determine CAFD can be found on page 60 of Pattern Energy's 2016
Annual Report on Form 10-K.
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Cautionary Statement Regarding Forward-Looking
Statements
Certain statements contained in this press
release constitute "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of Canadian
securities laws, including statements regarding the five year
average annual CAFD generated by Meikle Wind and the outlook of the
Company's business model and investment decisions. These
forward-looking statements represent the Company's expectations or
beliefs concerning future events, and it is possible that the
results described in this press release will not be achieved. These
forward-looking statements are subject to risks, uncertainties and
other factors, many of which are outside of the Company's control,
which could cause actual results to differ materially from the
results discussed in the forward-looking statements.
Any forward-looking statement speaks only as of the date on
which it is made, and, except as required by law, the Company does
not undertake any obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise. New factors emerge from time to time,
and it is not possible for the Company to predict all such factors.
When considering these forward-looking statements, you should keep
in mind the risk factors and other cautionary statements in the
Company's annual report on Form 10-K and any quarterly reports on
Form 10-Q. The risk factors and other factors noted therein could
cause actual events or the Company's actual results to differ
materially from those contained in any forward-looking
statement.
Contacts:
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Media
Relations
Matt
Dallas
917-363-1333
matt.dallas@patternenergy.com
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Investor
Relations
Ross
Marshall
416-526-1563
ross.marshall@loderockadvisors.com
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SOURCE Pattern Energy Group Inc.