Through its acquisition of Alterra Power Corp., now complete, Innergex Renewable Energy Inc. has become the largest independent renewable energy producer in British Columbia, according to a press release.
The two companies announced they had entered into an agreement for the acquisition in October 2017.
Under the agreement, Innergex acquired all of the issued and outstanding common shares of Alterra for an aggregate consideration of $1.1 billion, including the assumption of Alterra’s debt.
This acquisition adds 485 MW (1,049 MW gross) of renewable energy assets in operation and under construction to Innergex’s portfolio, bringing the company’s total capacity to 1,609 MW (2,896 MW gross). Innergex says its installed capacity is expected to reach more than 2,000 MW of hydro, wind, solar and geothermal projects in Canada, the U.S., France and Iceland by 2020.
Additionally, the acquisition brings Innergex a pipeline of projects in preliminary stages or in progress with an estimated net capacity of more than 5,000 MW.
Two hydro projects Innergex is currently investigating are the 135-MW Pelican and 135-MW Sundog generating stations in Alberta, Canada.
“Our acquisition of Alterra is about accelerating our growth and taking Innergex to the next level,” said Michel Letellier, president and chief executive officer of Innergex. “We are one of the largest independent renewable energy producers in Canada. This transaction gives us a stronger platform for solid, long-term growth in the United States, the world’s second largest growth market for renewables.”
As part of the transaction, Ross Beaty, executive chairman of Alterra, joined Innergex’s board of directors to “help advance the successful integration of the two companies,” according to Jean La Couture, Innergex chairman of the board.
Financing for the cash portion of the transaction, provided by la Caisse de depot et placement du Quebec, was completed concurrently with the closing of the acquisition. La Caisse provided Innergex with a $150 million subordinated unsecured five-year term loan. In addition, Innergex’s revolving credit facilities were increased to $700 million (from $225 million), led by BMO Capital Markets, National Bank Financial Inc. and TD Securities as co-lead arrangers and joint book managers.
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