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Boralex Announces an Agreement to Acquire Invenergy Renewables’ Interests in 5 Wind Farms in Québec for $215 million, a $180 million Public Offering and a $45 million Private Placement

Key Transaction Highlights

  • Acquisition of interests in 5 wind farms in Québec totaling 201 MW of net installed capacity once closing conditions are met
  • PPAs with Hydro-Québec Distribution expiring between 2032 and 2041
  • Will increase net installed capacity in Québec to 568 MW
  • Significantly enhances Boralex’s renewable power portfolio
  • Will increase net installed capacity by 12% to 1,820 MW
  • Will extend portfolio’s weighted average PPA term to 14 years
  • Expected to add $45M in annual EBITDA(A)1
  • Accretive to Discretionary Cash Flow per share1
  • Mid single-digit accretion in 2019 and gradually increasing to high single-digit in or about 2022, combined with the acquisition of Kallista, which was completed on June 20, 2018
  • 8% increase in annual dividend per share to $0.66, which represents the second increase in 2018 for a total 10% increase in annual dividend per share
  • Boralex increases its growth target
  • 2019 EBITDA(A)2 target increased from $405-$425M to $490-$510M

Montréal, Québec, June 20, 2018 – Boralex Inc. (TSX: BLX) (“Boralex” or the “Corporation”) is pleased to announce it has entered into binding agreements with affiliates of Invenergy Renewables LLC (“Invenergy”) to acquire all of its economic interests in 5 wind farms in Québec totaling 201 MW (the “Projects”) of net installed capacity, for a total cash consideration of $215 million, subject to adjustments under the acquisition agreements (the “Acquisition”).

Located in the MRC d’Avignon and the MRC des Appalaches in Eastern Québec, the Projects were commissioned between March 2012 and December 2016. They comprise state-of-the-art Enercon and GE turbines. The Projects benefit from long-term Power Purchase Agreements (“PPAs”) with Hydro-Québec Distribution expiring between 2032 and 2041.

“We are delighted to announce today the proposed acquisition of interests in 5 wind farms from Invenergy. These high quality assets complement Boralex’s existing portfolio and will add exposure to our home market in Québec. Upon closing, Boralex will also become the new manager of the sites which will provide additional operating cash flows and is expected to lead to increased operational synergies for Boralex as a whole over time. Furthermore, today’s announced equity financings are expected to provide Boralex with the flexibility to pursue the implementation of its growth strategy and continue to deliver value to its shareholders.” said Patrick Lemaire, President and Chief Executive Officer of Boralex.

Description of the Projects

The Projects are comprised of the following:

  • Des Moulins I wind farm project (136 MW) (“Des Moulins I”) is located in the MRC des Appalaches, Québec and is currently owned, indirectly, by Invenergy (51%) and Caisse de dépôt et placement du Québec (“la Caisse”) (49%). Des Moulins I operates 59 E-82 wind turbines, was commissioned in December 2013 and has a PPA in place expiring in December 2033;
  • Des Moulins II wind farm project (21 MW) (“Des Moulins II”) is located in the MRC d’Avignon in Gaspésie, Québec and is currently owned, indirectly, by Invenergy (51%) and la Caisse (49%). Des Moulins II operates 9 E-92 wind turbines, was commissioned in December 2013 and has a PPA in place until December 2033;
  • Le Plateau I wind farm project (139 MW) (“Le Plateau I”) is located in the MRC d’Avignon in Gaspésie, Québec and is currently owned, indirectly, by Invenergy (51%) and la Caisse (49%). Le Plateau I operates 60 E-70 E4 wind turbines, was commissioned in March 2012 and has a PPA in place until March 2032;
  • Le Plateau II wind farm project (21 MW) (“Le Plateau II”) is located in the MRC D’Avignon in Gaspésie, Québec and is currently owned, indirectly, by Invenergy (59.96% in the project limited partnership and 51% in the general partner of the project limited partnership) and Régie intermunicipale de l’énergie Gaspésie-Iles-de-la-Madeleine (“Régie”) (40.04% in the project limited partnership and 49% in the general partner of the project limited partnership). Le Plateau II operates 9 E-92 wind turbines, was commissioned in December 2014 and has a PPA in place until December 2034. Régie holds a right of first offer with respect to Invenergy’s interest in Le Plateau II; and
  • Roncevaux wind farm project (75 MW) (“Roncevaux”) is located in the MRC d’Avignon in Gaspésie, Québec and is currently owned, indirectly, by Invenergy (50%), Régie intermunicipale de l’énergie du Bas-Saint-Laurent (previously Énergie éolienne Bas-Saint-Laurent S.E.N.C.) (“Énergie BSL”) (33.33%) and Régie (16.67%). Roncevaux operates 34 GE wind turbines, was commissioned in December 2016 and has a PPA in place until December 2041 Each of Énergie BSL and Régie holds a right of first offer with respect to Invenergy’s interest in Roncevaux project.

Read More: https://www.boralex.com/cms/uploads/43861039048b7548f83c8017197bd59f.pdf

NT4

The post Boralex Announces an Agreement to Acquire Invenergy Renewables’ Interests in 5 Wind Farms in Québec for $215 million, a $180 million Public Offering and a $45 million Private Placement appeared first on NationTalk.

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