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Finavera to sell BC wind projects to Pattern for C$40m
Finavera Wind Energy has reached agreement to sell its 300MW project portfolio in British Columbia for C$40m ($40m) to a subsidiary of independent US developer Pattern Energy.
The deal is subject to approval from Finavera shareholders and the TSX Venture Exchange.
It calls for Pattern to refinance up to C$9m of Finavera’s corporate debt, fund certain development costs going forward and provide it with a further debt facility at an annual rate of 10%. The projects that Pattern will acquire are Bullmoose, Meikle, Tumbler Ridge and Wildmare.
Post-acquisition, Pattern has also committed to development spending on the near-term projects. It will pay $11m to Finavera upon shareholder approval and upon full acquisition of the project companies, with the balance of $40m being proportionally payable upon all projects proceeding into construction and obtaining construction financing.
Finavera will retain a 10% interest in the 105MW Cloosh Valley Wind Project in Ireland that was not part of the deal.
"This transaction is a testament to the quality of our portfolio and is an excellent example of the monetization of value created through our development skill set,” says Finavera Wind Energy chief executive Jason Bak.
"We are pleased to have Pattern as a partner in this transaction given their depth of experience and financial ability,” he adds. “Finavera is confident in Pattern's ability to move these projects forward to construction and to honour the commitments that were made to project stakeholders during their development."
Pattern already owns the 138MW St. Joseph wind farm in Manitoba and is developing projects elsewhere in the province, in Ontario and Saskatchewan.