Northland Power has entered into an agreement to sell a 130MW solar plant in Mexico to Cometa Energia, a subsidiary of Saavi Energia.
The La Lucha array is located in Durango and has been in operation since June 2023.
The sale is expected to close in 2024, upon satisfaction of customary closing conditions, including finalising insurance placement, lender approval and getting the go-ahead from the Federal Economic Competition Commission, required under applicable anti-trust laws in Mexico.
Northland expects to receive approximately $205m in cash after taxes, transaction fees and other customary adjustments.
Proceeds will be initially used towards repayment of amounts drawn on the company’s revolving credit facility and for general corporate purposes.
“This transaction reflects Northland’s strategy to recycle assets from non-core markets to generate liquidity and simplify our overall business towards operating in core markets,” said Northland president and chief executive Mike Crawley.