SAN FRANCISCO, Jan. 9, 2019 /PRNewswire/ -- Pattern Energy
Group Inc. (NASDAQ and TSX: PEGI) ("Pattern Energy" or the
"Company") today announced it completed the sale of the Company's
90 megawatt ("MW") minority owned interest in the K2 Wind power
facility ("K2") in Ontario for a
purchase price of CAD$216.0
(US$160.0 million1), to a
consortium of investors led by Axium Infrastructure. The
transaction closed on December 31,
2018.
"The sale of K2 at a 15.0x ten-year average CAFD
multiple2 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," said Mike Garland,
CEO of Pattern Energy. "We have now sold two assets, El Arrayán and
K2, at significant premiums to the multiple at which we trade in
the markets. We will continue as operator of K2 after the sale.
Pattern Energy is the largest operator of wind power facilities in
Canada with more than 1,500 MW
under operation across the country."
Pattern Energy will record a pretax gain of approximately
US$71.0 million on the sale.
K2 is a 270 MW wind power facility located in the Township of
Ashfield-Colborne-Wawanosh.
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 24 wind and solar power facilities with a
total owned interest of 2,806 MW in the
United States, Canada and
Japan that use proven,
best-in-class technology. Pattern Energy's wind and solar 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 $1.35.
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2)
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This forward
looking measure of ten-year average annual purchase price multiple
of cash available for distribution (CAFD) from the K2 project 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 within Item 2, Management's Discussion and Analysis of
Financial Condition and Results of Operations - Key Metrics,
of Pattern Energy's 2018 Quarterly Report on Form 10-Q
for the period ended September 30, 2018.
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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 gain amount Pattern Energy
expects from the sale, the ten-year average CAFD multiple
represented by the purchase price, and the ability to recycle
assets and redeploy capital into more accretive opportunities.
These forward-looking statements represent Pattern Energy'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
Pattern Energy'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, Pattern Energy
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 Pattern Energy to predict all such
factors. When considering these forward-looking statements, you
should keep in mind the risk factors and other cautionary
statements in Pattern Energy'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 Pattern Energy's actual
results to differ materially from those contained in any
forward-looking statement.
Contacts:
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.