ArcLight Capital to buy Infigen’s US wind business for $272.5 mln

Infigen Energy said Wednesday that it has agreed to sell its US wind business to Primary Wind Power, a portfolio company of ArcLight Capital Partners LLC, for about $272.5 million. Infigen’s US wind business comprises Class B equity interests in 18 US wind farms. The deal is expected to close by October.

PRESS RELEASE

DALLAS, July 15, 2015 /PRNewswire/ — Infigen Energy (ASX: IFN) today announced that it has agreed to sell its US wind business to Primary Wind Power, LLC (Primary Wind), a newly-formed portfolio company affiliated with ArcLight Capital Partners, LLC (ArcLight), for approximately US $272.5 million.
Completion of the wind transaction is subject to various closing conditions, but it is expected to close by October 2015.
Infigen’s US wind business comprises Class B equity interests in 18 US wind farms with a total installed capacity of approximately 1,557 MW, of which Infigen’s interests comprise 1,089 MW on an economic interest basis. In addition, Infigen has an investment in Class A cash flow interests in nine of those wind farms and owns a US based asset management business.
Australia-headquartered Infigen will use the proceeds of sale to reduce its Global Facility debt and place the company’s retained Australian business on a stronger financial footing. The company also recently announced its intention to sell its US solar development pipeline to an unnamed global solar company for US $37.9 million.
“Infigen has been assessing various options to improve the capital structure of our business and unlock security holder value for quite some time,” said Infigen’s Managing Director, Miles George. “The sale of our US wind business is consistent with that strategic objective, represents fair value for security holders having regard to the cash flow profile of the US assets and is a significant milestone on the path to improving the future prospects for Infigen and its security holders.”
“This creates a growth opportunity for our wind business in the US,” said Infigen US President David Smith. “We are pleased to join forces with ArcLight to efficiently and cost-effectively manage our existing assets while evaluating opportunities for growing the portfolio.”
“ArcLight formed Primary Wind to acquire Infigen’s US Wind business, including the management and operations team,” said Dan Revers, Managing Partner of ArcLight Capital Partners. “The US renewable power industry has undergone dramatic growth in recent years and the Primary Wind platform is poised to be a consolidator in this evolving industry.”
Infigen will provide further details regarding the transaction upon its completion.
About ArcLight Capital Partners, LLC
ArcLight is one of the leading private equity firms focused on North American energy infrastructure assets. Since its establishment in 2001, ArcLight has invested over $12.8 billion across multiple energy cycles in more than 90 power, midstream and production assets. Headquartered in Boston, Massachusetts with additional offices in Luxembourg, the firm’s investment team brings extensive energy expertise, industry relationships, and specialized value creation capabilities to its portfolio. More information on ArcLight, as well as a complete list of its portfolio companies, can be found at http://www.arclightcapital.com.
About Infigen Energy
Infigen Energy is a specialist renewable energy business. We have interests in 24 wind farms across Australia and the United States. With a total installed capacity in excess of 1,600MW (on an equity interest basis), we currently generate enough renewable energy per year to power over half a million households.
As a fully integrated renewable energy business in Australia, we develop, build, own and operate energy generation assets and directly manage the sale of the electricity that we produce to a range of customers in the wholesale market.
Infigen Energy trades on the Australian Securities Exchange under the code IFN.
For further information please visit our website: www.infigenenergy.com
UBS Investment Bank is exclusive financial adviser and Skadden, Arps, Slate, Meagher & Flom LLP is legal counsel for Infigen on the US wind business sale transaction. Latham & Watkins LLP is legal counsel and Ernst & Young LLP is providing tax and accounting advice to ArcLight on the transaction.

SOURCE Infigen Energy