PSP Investments buys 49 pct stake in Stillwater Wind Facility

Pattern Energy Group Inc (TSX, Nasdaq: PEGI) has acquired a 35 megawatt owned interest in the Stillwater Wind Facility from Pattern Development.

Pattern Energy acquired 51 percent of the class B interests in the Montana wind power facility for about US$23 million.

Canada’s Public Sector Pension Investment Board (PSP Investments), which agreed last year to co-invest US$500 million in projects acquired by Pattern Energy, took 49 percent of the class B interests in Stillwater.

The facility commenced commercial operations in October.

Pattern Energy Group LP, Pattern Energy’s main shareholder, is backed by U.S. private equity firm Riverstone Holdings.

PRESS RELEASE

Pattern Energy Acquires Interest in Stillwater Wind Facility in Montana as it Begins Operations

SAN FRANCISCO, Nov. 26, 2018 /PRNewswire/ — Pattern Energy Group Inc. (NASDAQ and TSX: PEGI) (“Pattern Energy” or the “Company”) today announced the acquisition of a 35 megawatt (“MW”) owned interest in the Stillwater Wind (“Stillwater”) facility from Pattern Energy Group 2 LP (“Pattern Development 2.0”). Stillwater commenced commercial operations in late October and is located in Stillwater County, Montana.

Transaction Highlights

The cash purchase price for Pattern Energy’s 35 MW owned interest in Stillwater is approximately $23 million, which represents less than a 10x multiple of the five-year average cash available for distribution1 (“CAFD”)
First acquisition of an identified right of first offer (“iROFO”) project from Pattern Development 2.0
Increases Pattern Energy’s operating portfolio to nearly 4 gigawatts (“GW”) of gross capacity, with more than 2.8 GW of owned capacity, across 24 projects, excluding the project it has agreed to sell

Pattern Energy acquired 51% of the class B interests in Stillwater for a total cash consideration of approximately $23 million, which represents a CAFD multiple of less than 10x of the five-year average CAFD1, and was funded using available liquidity. The Public Sector Pension Investment Board (“PSP Investments”) acquired 49% of the class B interests in Stillwater. Pattern Energy will operate the facility.

“This accretive acquisition is another proof point of our ability to execute our growth strategy and increase our CAFD without relying on issuing common equity,” said Mike Garland, CEO of Pattern Energy. “Stillwater is the first of two projects from our iROFO list in Montana, a robust wind resource region, and the fourth project we have executed under the joint venture arrangements with PSP Investments. It is also the first acquisition we have made directly from Pattern Development 2.0, providing meaningful benefits to the business through our 29% ownership interest in Pattern Development 2.0.”

Stillwater has a 25-year power purchase agreement for 100% of the energy produced. Stillwater is utilizing a total of 31 Siemens Gamesa wind turbines comprised of five 2.3 MW turbines with 108 meter rotors and 26 2.625 MW turbines with 120 meter rotors. During each year of operations, the 80 MW facility will generate energy equal to the needs of more than 23,000 Montana homes.

*This forward looking measure of five-year average annual purchase price multiple of cash available for distribution (CAFD) contribution from the Stillwater project is a non-GAAP measure that cannot be reconciled to net cash provided by operating activities as the most directly comparable GAAP financial measure without unreasonable effort primarily because of the uncertainties involved in estimating forward-looking changes in working capital balances which are added to earnings to arrive at cash provided by operations and subtracted therefrom to arrive at CAFD. A description of the adjustments to determine CAFD can be found within Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations – Key Metrics, of Pattern Energy’s 2018 Quarterly Report on Form 10-Q for the period ended September 30, 2018.

About Pattern Energy
Pattern Energy Group Inc. (Pattern Energy) is an independent power company listed on the Nasdaq Global Select Market and Toronto Stock Exchange. Pattern Energy has a portfolio of 24 wind and solar power facilities, which excludes the one facility it has agreed to sell, with a total owned interest of 2,806 MW in the United States, Canada and Japan that use proven, best-in-class technology. Pattern Energy’s wind and solar power facilities generate stable long-term cash flows in attractive markets and provide a solid foundation for the continued growth of the business. For more information, visit www.patternenergy.com.

Contacts:

Media Relations

Matt Dallas: 917-363-1333/matt.dallas@patternenergy.com

Investor Relations

Ross Marshall: 416-526-1563/ross.marshall@loderockadvisors.com