Capital Power Announces Sale of Canadian Wind Facilities

Wedoany.com Report-Nov 29,Capital Power Corporation and Axium Infrastructure have announced that Axium, through one of its managed funds, has agreed to acquire a 49% interest in two operating Canadian wind facilities from Capital Power. The 246 MW portfolio includes the Quality Wind facility in British Columbia and the Port Dover and Nanticoke Wind facility in Ontario. Total pre-tax cash proceeds to Capital Power from the transaction are expected to be approximately US$340 million, inclusive of working capital.

The two wind facilities are fully contracted with investment grade counterparties and have a remaining weighted average contract life of ~11 years. Capital Power will continue to manage and operate the assets on behalf of the newly formed partnership under a long-term asset management agreement. Consistent with its strategy, the transaction represents the crystallisation of a levered equity return in excess of Capital Power’s capital allocation thresholds and enhances its financial flexibility.

“We are proud to announce this asset sell-down transaction which represents a concrete instance of us unlocking asset value in alignment with our strategy,” said Jason Comandante, SVP, Head of Canada of Capital Power. “Our partnership with Axium, a well-respected investor, speaks to the market’s recognition of Capital Power as a top-tier operator and developer.”

“We are very pleased to establish a partnership with Capital Power,” added Elio Gatto, Vice President & Senior Investment Director at Axium. “This transaction is consistent with Axium’s strategy of acquiring meaningful equity positions in high-quality renewable energy projects alongside top-tier partners.”

The transaction is expected to close by year-end 2024, subject to customary closing conditions.

IBC Capital Markets acted as financial advisor to Capital Power and Dentons Canada LLP acted as legal advisor to Capital Power.