Canadian developer Innergex Renewable Energy has signed a partnership with US investment manager Irradiant Partners to sell minority interests in its 826MW portfolio in Texas.
Innergex will sell to Irradiant 49.9% of the 250MW Phoebe solar farm and 226MW Griffin Trail wind array (pictured) and 22.2% of the 350MW Foard City wind site for a total equity consideration of US$188m (CAN$257m), including customary working capital adjustments.
Net proceeds from the transaction will be primarily applied towards repaying the existing Foard City and Phoebe project debt and the power hedge offtake contract in place at Phoebe, with the remainder expected to be used for general corporate purposes.
“We are proud to partner with Irradiant to de-risk and enhance our Texas portfolio”, said Innergex president and chief executive Michel Letellier.
He added: “We have built large scale and high-quality assets in Texas, and we believe that this new structure, where we depart from the power hedge offtake model, will enable us to improve our overall risk profile and optimise the performance of our assets.
“The transaction also provides an opportunity to crystallise value from our operating portfolio in Texas.