- Acquisition of the remaining 37.75% minority interest of the
tax equity partner in the 138 MW Mountain Air wind portfolio
already owned by Innergex
- A CAN$64.4 million transaction to increase Innergex's
contracted profile in the United
States
- The transaction is immediately accretive to Free Cash Flow per
Share
LONGUEUIL, QC, Dec. 14,
2022 /CNW Telbec/ - Innergex Renewable Energy Inc.
(TSX: INE) ("Innergex" or the "Corporation") acquired all the Class
A shares of its 138 MW Mountain Air wind portfolio in Idaho, in the United
States, for a total consideration of US$47.5 million (CAN$64.4 million) from its tax
equity partner, an affiliate of MetLife Investment Management.
These shares represent the remaining 37.75% of the outstanding
shares of the portfolio not already owned by Innergex.
"We are pleased to now have the Mountain Air wind portfolio as a
wholly owned entity," said Michel
Letellier, President and Chief Executive Officer of
Innergex. "This transaction not only represents a natural
continuation of the path we embarked on when we first acquired a
stake in the Mountain Air portfolio in 2020, but also an
opportunity to generate additional accretive cash flows while
increasing Innergex's contracted wind profile in the United States."
The Mountain Air wind portfolio comprises six 23 MW wind farms,
Cold Springs, Desert Meadow,
Hammett Hill, Mainline, Ryegrass and Two Ponds. These wind assets,
on a consolidated basis, are expected to generate annual revenues
of approximately US$29.7 million
(CAN$40.3 million) in 2023, while operating, general and
administrative expenses are expected to reach US$7.1 million (CAN$9.6 million) during
the same period.
The acquisition of the remaining shares of Mountain Air will
mainly be financed with the proceeds from the sale of safe harbor
solar modules to be received during the first quarter of 2023. The
modules were sold to an undisclosed party on December 8, 2022. The decision to sell these
modules follows the publication of the Inflation Reduction Act
("IRA") supporting renewable energy projects, allowing Innergex to
secure tax incentives for its development project portfolio without
the use of the safe harbor modules previously secured under the
former tax incentive program.
All six wind farms have 10-year remaining power purchase
agreements with the Idaho Power Company for 100% of the electricity
as produced and at attractive escalating prices (US$90.0/MWh in 2023, escalating to US$120.9/MWh in 2032).
About Innergex Renewable Energy
Inc.
For over 30 years, Innergex has believed in a world where
abundant renewable energy promotes healthier
communities and creates shared prosperity. As an independent
renewable power producer which develops, acquires, owns and
operates hydroelectric facilities, wind farms, solar farms and
energy storage facilities, Innergex is convinced that generating
power from renewable sources will lead the way to a better world.
Innergex conducts operations in Canada, the United
States, France and
Chile and manages a large
portfolio of high-quality assets currently consisting of interests
in 84 operating facilities with an aggregate net installed capacity
of 3,634 MW (gross 4,184 MW) and an energy storage capacity of 159
MWh, including 40 hydroelectric facilities, 35 wind
facilities, 8 solar facilities and 1 battery energy storage
facility. Innergex also holds interests in 13 projects under
development with a net installed capacity of 731 MW (gross 768 MW)
and an energy storage capacity of 745 MWh, 3 of which are under
construction, as well as prospective projects at different stages
of development with an aggregate gross installed capacity totaling
8,513 MW. Its approach to building shareholder value is to generate
sustainable cash flows, provide an attractive risk-adjusted return
on invested capital and to distribute a stable dividend.
Cautionary Statement Regarding
Forward-Looking Information
To inform readers of the Corporation's future prospects, this
press release contains forward-looking information within the
meaning of applicable securities laws ("Forward-Looking
Information"), including project acquisitions, accretion expected
to result from such acquisitions, and other statements that are not
historical facts. Forward-Looking Information can generally be
identified by the use of words such as "approximately", "may",
"will", "could", "believes", "expects", "intends", "should",
"would", "plans", "potential", "project", "anticipates",
"estimates", "scheduled" or "forecasts", or other comparable terms
that state that certain events will or will not occur. It
represents the projections and expectations of the Corporation
relating to future events or results as of the date of this press
release.
Forward-Looking Information includes future-oriented financial
information or financial outlook within the meaning of securities
laws, including information regarding the estimated targeted
revenues, targeted Revenues Proportionate, targeted Adjusted EBITDA
and targeted Adjusted EBITDA Proportionate, targeted Free Cash
Flow, targeted Free Cash Flow per Share and other statements that
are not historical facts. Such information is intended to inform
readers of the potential financial impact of completed
acquisitions. Such information may not be appropriate for other
purposes.
Forward-Looking Information is based on certain key assumptions
made by the Corporation, including, without restriction, those
concerning hydrology, wind regimes and solar irradiation;
performance of operating facilities, acquisitions and commissioned
projects; project performance; availability of capital resources
and timely performance by third parties of contractual obligations;
favourable market conditions for share issuance to support growth
financing; favourable economic and financial market conditions; the
Corporation's success in developing and constructing new
facilities; successful renewal of PPAs; sufficient human resources
to deliver service and execute the capital plan; no significant
event occurring outside the ordinary course of business such as a
natural disaster, pandemic or other calamity; continued maintenance
of information technology infrastructure and no material breach of
cybersecurity. Please refer to Section 1 - Highlight of the
Management's Discussion and Analysis for the three- and six-month
period ended June 30, 2022 for
details regarding the assumptions used with respect to the 2022
growth targets and to Section 5 - Outlook of the Annual Report for
the 2020-2025 Strategic Plan outlook.
For more information on the risks and uncertainties that may
cause actual results or performance to be materially different from
those expressed, implied or presented by the forward-looking
information or on the principal assumptions used to derive this
information, please refer to the "Forward-Looking Information"
section of the Management's Discussion and Analysis for the three-
and nine-month periods ended September 30,
2022.
SOURCE Innergex Renewable Energy Inc.