By Michael Dabaie

 

NextEra Energy Partners LP said it is in an agreement with a subsidiary of NextEra Energy Resources LLC to acquire a 50% interest in a renewables portfolio of about 2,520-megawatts.

In conjunction with the deal, NextEra Energy Partners also entered into an about $824 million convertible equity portfolio financing with Apollo Global Management.

NextEra Energy Partners said it expects to acquire the interests in the assets for about $849 million, plus NextEra Energy Partners' share of the portfolio's total tax-equity financings, estimated at about $866 million.

NextEra Energy Partners said it expects the deal to contribute adjusted EBITDA of about $184 million to $194 million and cash available for distribution of about $58 million to $67 million on a five-year average annual run-rate basis.

The company said it expects to close the deal later this year or in early 2022.

The renewables portfolio consists of about 2,520 megawatts of newly constructed or in-construction renewables projects and about 115 megawatts of integrated battery storage.

The portfolio, expected to be operational at the time of funding, consists of 13 utility-scale wind and solar assets, three of which include battery storage, that are diversified across U.S. power markets, Apollo said. The assets have in place long-term power purchase agreements with diversified, investment-grade counterparties, Apollo said.

NextEra Energy Partners said it continues to expect to be in the upper end of its year-end 2021 run-rate adjusted EBITDA and CAFD expectations ranges of $1.44 billion to $1.62 billion and $600 million to $680 million, respectively.

 

Write to Michael Dabaie at michael.dabaie@wsj.com

 

(END) Dow Jones Newswires

October 22, 2021 08:45 ET (12:45 GMT)

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