- Announces it has entered into a definitive agreement to acquire
a 100% interest in a portfolio of three operating solar facilities
located in Ontario.
- Adds high quality operating assets which are fully contracted
for an average remaining term of almost nine years.
- Offers solid cash flow characteristics through an attractive
fixed power purchase agreement price, and stable operating
profile.
- The Portfolio's cash flow from operating activities and Free
Cash Flow1 has averaged an annual $23.0 million and $7.5
million respectively over a historical four-year
period.
LONGUEUIL, QC, Jan. 23,
2023 /CNW Telbec/ - Innergex Renewable Energy Inc.
(TSX: INE) ("Innergex" or the "Corporation") is pleased to announce
that it has entered into an agreement to acquire the 60 MW Sault
Ste. Marie solar portfolio (the "Portfolio") located in
northwestern Ontario from Fengate
Asset Management for a purchase price of $50.2 million, along with the assumption of
$169.5 million of existing
debt.
"This is our first acquisition in Canada since 2018, and we are excited to add
this collection of high-performing fully contracted solar assets to
our portfolio for additional and reliable Canadian dollar cash
flows," said Michel Letellier,
President and Chief Executive Officer of Innergex. "The portfolio
adds to our geographical diversification and improves our asset mix
by adding 60 MW of solar capacity to our existing fleet."
The Portfolio
The Sault Ste. Marie 1, 2, and
3 facilities ("SSM1", "SSM2", "SSM3", respectively) reached full
commissioning between 2010 and 2011 and have achieved an excellent
operating track record since then, with a historical 5-year
weighted-average availability of 98.5%.
All three facilities are fully contracted under long-term
Renewable Energy Standard Offer Program power purchase agreements
with the Independent Electricity System Operator (Aa3 rating by
Moody's). The Portfolio has an average remaining contract life of
close to nine years.
|
SSM1
|
SSM2
|
SSM3
|
Gross installed
capacity
|
20 MW
|
30 MW
|
10 MW
|
Commissioned
|
October 2010
|
July 2011
|
November
2011
|
Remaining term of power
purchase agreement
|
8 years
|
9 years
|
9 years
|
The assets are expected to generate annual revenues of
approximately $33.1 million in 2023,
while operating, general and administrative expenses are expected
to reach approximately $3.1 million
during the same period. Over a historical four-year period, cash
flow from operating activities of the Portfolio has reached an
average of $23.0 million on an annual
basis, while Free Cash Flow2 has averaged $7.5 million for the same period. Innergex
expects the Portfolio to be immediately accretive based on these
historical averages. The acquisition will be financed with draws
from Innergex's existing revolving credit facility.
Approvals and Timeline
The acquisition is expected to close in Q1 2023 and is subject
to certain regulatory approvals in Canada, key third party consents and other
customary closing conditions.
Advisors
National Bank Financial Inc. acted as financial advisor to
Innergex.
About Innergex Renewable Energy Inc.
For over 30 years, Innergex has believed in a world where
abundant renewable energy promotes healthier communities and
creates shared prosperity. As an independent renewable power
producer which develops, acquires, owns and operates hydroelectric
facilities, wind farms, solar farms and energy storage facilities,
Innergex is convinced that generating power from renewable sources
will lead the way to a better world. Innergex conducts operations
in Canada, the United States, France and Chile and manages a large portfolio of
high-quality assets currently consisting of interests in 84
operating facilities with an aggregate net installed capacity of
3,634 MW (gross 4,184 MW) and an energy storage capacity of
159 MWh, including 40 hydroelectric facilities, 35 wind
facilities, 8 solar facilities and 1 battery energy storage
facility. Innergex also holds interests in 13 projects under
development with a net installed capacity of 731 MW (gross 768 MW)
and an energy storage capacity of 745 MWh, 3 of which are under
construction, as well as prospective projects at different stages
of development with an aggregate gross installed capacity totaling
8,513 MW. Its approach to building shareholder value is to generate
sustainable cash flows, provide an attractive risk-adjusted return
on invested capital and to distribute a stable dividend.
Cautionary Statement Regarding Forward-Looking
Information
To inform readers of the Corporation's future prospects, this
press release contains forward-looking information within the
meaning of applicable securities laws ("Forward-Looking
Information"), including the Corporation's growth targets, power
production, project acquisitions, and strategic, operational and
financial benefits and accretion expected to result from such
acquisitions, business strategy, business integration, and other
statements that are not historical facts. Forward-Looking
Information can generally be identified by the use of words such as
"approximately", "may", "will", "could", "believes", "expects",
"intends", "should", "would", "plans", "potential", "project",
"anticipates", "estimates", "scheduled" or "forecasts", or other
comparable terms that state that certain events will or will not
occur. It represents the projections and expectations of the
Corporation relating to future events or results as of the date of
this press release.
Forward-Looking Information includes future-oriented financial
information or financial outlook within the meaning of securities
laws, including information regarding the Corporation's
estimated targeted revenues, targeted cash flow from operating
activities, targeted Free Cash Flow, the estimated project costs
and other statements that are not historical facts. Such
information is intended to inform readers of the potential
financial impact of expected results, of the expected commissioning
of Development Projects, of the potential financial impact of
completed and future acquisitions and of the Corporation's ability
to sustain current dividends and to fund its growth. Such
information may not be appropriate for other purposes.
Forward-Looking Information is based on certain key assumptions
made by the Corporation, including, without restriction, those
concerning hydrology, wind regimes and solar irradiation;
performance of operating facilities, acquisitions and commissioned
projects; project performance; availability of capital resources
and timely performance by third parties of contractual obligations;
favourable market conditions for share issuance to support growth
financing; favourable economic and financial market conditions; the
Corporation's success in developing and constructing new
facilities; successful renewal of PPAs; sufficient human resources
to deliver service and execute the capital plan; no significant
event occurring outside the ordinary course of business such as a
natural disaster, pandemic or other calamity; continued maintenance
of information technology infrastructure and no material breach of
cybersecurity.
For more information on the risks and uncertainties that may
cause actual results or performance to be materially different from
those expressed, implied or presented by the forward-looking
information or on the principal assumptions used to derive this
information, please refer to the "Forward-Looking Information"
section of the Management's Discussion and Analysis for the three-
and nine-month periods ended September 30,
2022.
Cautionary Statement Regarding Non-IFRS measures
Some measures referred to in this press release are not
recognized measures under IFRS and therefore may not be comparable
to those presented by other issuers. Innergex believes that these
indicators are important, as they provide management and the reader
with additional information about the Corporation's production and
cash generation capabilities, its ability to sustain current
dividends and dividend increases and its ability to fund its
growth. These indicators also facilitate the comparison of results
over different periods. Free Cash Flow is not a measure recognized
by IFRS and has no standardized meaning prescribed by IFRS. Please
refer to the "Non-IFRS Measures" section of the Management's
Discussion and Analysis for the three- and nine-month periods ended
September 30, 2022 for more
information.
1This
measure is not a recognized measure under IFRS and therefore may
not be comparable to the one presented by other issuers. Please
refer to the "Non-IFRS Measures" section of the three- and
nine-month periods ended September 30, 2022 MD&A for more
information.
|
2This
measure is not a recognized measure under IFRS and therefore may
not be comparable to the one presented by other issuers. Please
refer to the "Non-IFRS Measures" section of the three- and
nine-month periods ended September 30, 2022 MD&A for more
information.
|
SOURCE Innergex Renewable Energy Inc.