EDPR sells stake in US wind assets

EDP Renewables says it will sell a minority equity interest in US wind assets with 1.101GW nameplate capacity to portfolio management firm Fiera Axium Infrastructure US.

The assets include seven operating wind farms installed between 2008 and 2011, and two others now under construction and due for commissioning this year. All of the facilities have long-term offtake agreements in place.

Fiera Axium’s interest in the portfolio will represent 394.5 MW.

According to EDPR, the total enterprise value on the portfolio is $1.7bn based on the transaction price and the expected tax equity liabilities of the projects.

When cash and tax attributes received since the projects’ inception are included, the total asset value of the portfolio is $2.55bn, or $2.32m/MW, EDPR says.

It expects the portfolio to generate cash distributable to equity shareholders of about $40m per year in 2015 and 2016.

The offer contemplates initial funding to occur upon obtaining regulatory approvals and final funding upon commercial operations of the assets under construction.

EDPR had 3.428GW of wind nameplate generation capacity in the US at the end of 2013, fourth most in the US behind NextEra Energy Resources, Iberdrola Renewables and Berkshire Hathaway Energy, according to the American Wind Energy Association (AWEA).