Cookie Consent by Free Privacy Policy website Innergex and Hydro-Québec announce the first joint acquisition under their strategic alliance and concurrent bought deal equity financing and private placement by Innergex
agosto 20, 2021 - Innergex Renewable Energy

Innergex and Hydro-Québec announce the first joint acquisition under their strategic alliance and concurrent bought deal equity financing and private placement by Innergex

Comunicato Stampa disponibile solo in lingua originale. 

#innergex Renewable #energy Inc. (TSX: INE) (“Innergex” or the “Corporation”) and HQI US Holding LLC, a subsidiary of Hydro-Québec (“Hydro-Québec”) have entered into a Membership Interest Purchase Agreement with Atlantic Power to acquire Curtis Palmer, a 60 MW run-of-river hydroelectric portfolio located in Corinth, New York, consisting of the 12 MW Curtis Mills and 48 MW Palmer Falls facilities (“Curtis Palmer” or the “Facilities”) for upfront cash consideration of US$310.0 million ($387.5 million) and an earn-out provision subject to the evolution of NYISO market pricing. This joint acquisition is the first under the Strategic Alliance formed by #innergex and Hydro-Québec in 2020. Upon closing, #innergex will own indirectly a 50% interest in the Facilities with Hydro-Québec indirectly owning the remaining 50% interest. #innergex is also announcing a $175.0 million bought deal equity financing of common shares and $43.5 million concurrent private placement of common shares to Hydro-Québec.

“We are thrilled to announce this first joint acquisition with Hydro-Québec under the Strategic Alliance. The acquisition of Curtis Palmer represents an opportunity for #innergex to apply its 30 years of expertise in managing small run-of-river hydroelectric facilities, while leveraging Hydro-Québec’s experience in New York to get a foothold in a new market,” said Michel Letellier, President and Chief Executive Officer of #innergex. “We are also announcing today an equity financing that will be used to fund the purchase price of this acquisition and further our expansion and diversification efforts. We are very pleased with this support for #innergex and look forward to further grow in our Strategic Alliance with Hydro-Québec.”

“After having been commercial partners with the State of New York for more than 100 years, we are now entering a new phase by investing directly in the State’s hydropower generation infrastructure alongside #innergex, to which we will both bring our extensive expertise. This investment clearly demonstrates our commitment to developing the share of renewables in the #energy mix of North America,” commented Sophie Brochu, President and CEO of Hydro-Québec.

“The Curtis Palmer facility is one of the highest quality assets in the Atlantic Power portfolio and an important hydro facility in the New York market,” said James J. Moore, Jr., Chief Executive Officer of Atlantic Power. “We are honored to have been stewards of it and now see it transferred to experienced operators like #innergex and Hydro-Québec.”

Financial Contribution to #innergex

The Facilities have a power purchase agreement (“PPA”) for #energy, RECs and capacity with Niagara Mohawk Power Corporation (A3 / BBB+) that expires upon the earlier of either December 31, 2027 or the delivery of cumulative 10,000 GWh (which is expected in 2026). Following the expiry of the PPA, it is expected that the Facilities will sell #energy, RECs and capacity in the NYISO market. The New York renewable #energy market benefits from state programs that support existing renewables and can offer additional upside potential to the Facilities, including the recent Tier 2 REC program, and the introduction of the social cost of carbon into #energy markets.

The Facilities have an attractive cash flow profile and are expected to generate average annual Adjusted EBITDA2 of US$42.5 million ($53.1 million) and average annual Free Cash Flow of US$39.5 million ($49.4 million) through the end of the PPA, without debt financing on a 100% basis. The purchase price implies a multiple of average annual Adjusted EBITDA of 7.3x and an average annual Free Cash Flow yield of 13% through year 2025. The additional 60 MW of capacity from Curtis Palmer will increase Innergex’s hydro portfolio to 1,259 MW and total portfolio to 3,801 MW of gross capacity.

Further information in the press release to download

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