NextEra Energy Partners is to acquire wind and solar projects totalling 611MW from sister company NextEra Energy Resources for over $1bn.
Th deal will see 100% interests taken in three wind farms – the 120MW Ashtabula 2 plant in North Dakota and the 150MW each Story County 2 facility in Iowa and White Oak project in Illinois.
Minority stakes of 49.9% each will also be taken in the 250MW Silver State, 62.25MW Marshall and 70MW Roswell PV plants in Nevada, Minnesota and New Mexico, respectively.
The projects have a remaining contract life of approximately 15 years.
NextEra Energy Partners – a growth-oriented limited partnership formed by NextEra Energy – expects to acquire the portfolio for total consideration of approximately $1.02bn, subject to working capital and other adjustments.
The acquisition is expected to close in the second quarter of 2019, subject to customary closing conditions and the receipt of certain regulatory approvals, the company added.
It also plans to recapitalise $220m of existing non-recourse project debt that is currently outstanding on four other wind farms with a combined capacity of 581MW.
In conjunction with the acquisition, NextEra Energy Partners has entered into a $900m convertible equity portfolio financing with Kohlberg Kravis Roberts (KKR).
Under the terms of the financing, KKR’s third Global Infrastructure Investors Fund will pay the $900m in exchange for an equity interest in the partnership.
NextEra Energy chief executive Jim Robo said: “The acquisition of approximately 611MW of high-quality, contracted renewable energy assets enhances the diversity of the partnership’s existing portfolio.
“Combining this acquisition with the recapitalisation of existing project debt on four existing NextEra Energy Partners’ assets is expected to provide significant benefits for unit holders.
“This combined transaction completes NextEra Energy Partners’ 2019 growth objectives.”