NextEra Energy Partners Inks Agreemnet To Acquire Renewables Portfolio

NextEra Energy Partners Inks Agreemnet To Acquire Renewables Portfolio
  • NextEra Energy Partners LP NEP has agreed with subsidiaries of NextEra Energy Resources LLC to acquire a 49% interest in an approximately 1.5-gigawatt renewables portfolio.
  • The deal also includes 100% of the indirect membership interests in an approximately 345-megawatt (MW) portfolio of operating wind assets. 
  • NEP expects to acquire the interests in the assets for total consideration of approximately $805 million, plus the assumption of its share of the portfolio's estimated $1.5 billion in tax equity financing.
  • Following the acquisition, NextEra Energy Partners will contribute its interests in the newly acquired projects and six existing renewable assets to a new portfolio.
  • In conjunction with the acquisition and creation of the new portfolio, NEP has entered into a convertible equity portfolio financing agreement of $805 million with the Ontario Teachers' Pension Plan Board.
  • "This significant access to low-cost capital leaves NextEra Energy Partners uniquely positioned to take advantage of the transformation underway in the energy industry and meet its long-term growth objectives," said John Ketchum, chairman and CEO.
  • NextEra Energy Partners expects to complete the acquisition later this year.
  • After the acquisition, the portfolio of assets is expected to contribute adjusted EBITDA and CAFD starting December 31, 2023.
  • Price Action: NEP shares are trading higher by 0.61% at $77.17 on the last check Friday.

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