NextEra Energy Partners buys 300 MW in renewable energy projects

NextEra Energy Partners entered into an agreement with a unit of its sponsor, NextEra Energy Resources, to buy the Seiling I & II Wind Energy Centers, a combined 299.2 MW wind power site in Dewey and Woodward counties, Oklahoma.

When completed, the acquisition of these assets will expand NextEra Energy Partners’ portfolio of contracted renewable energy projects to about 2,509 MW.

NextEra Energy Partners expects to complete the acquisition in the first quarter of 2016 for a total consideration of about $323 million, plus the assumption of about $200 million in tax equity financing. The purchase price is subject to working capital adjustments.

The partnership expects to fund the transaction, in part, through the net proceeds of an issuance of common units, with the balance of the purchase price expected to be funded through a draw under a unit of NextEra Energy Partners’ revolving credit facility.

NextEra Energy Partners expects the acquisition to contribute adjusted EBITDA of about $73 million to $83 million and CAFD of about $30 million to $35 million, each on an annual run rate basis as of Dec. 31, 2016.

The acquisition is expected to contribute to a 3.7 percent increase in the first-quarter distribution to an annualized rate of $1.275 per common unit and support NextEra Energy Partners’ current expectations of 12 to 15 percent per year growth in limited partner distributions through 2020 off a $1.23 annualized rate baseline.

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at Jennifer.Runyon@ClarionEvents.com.

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