A consortium led by Fiera Axium Infrastructure has acquired a minority ownership interest in a 1,100-megawatt (MW) portfolio of eight operating wind farms located throughout the United States from EDP Renewables (EDPR). The consortium is composed of Fiera Axium Infrastructure U.S. L.P., Swiss Life Funds (Lux) Global Infrastructure Opportunities S.C.A., SICAV-SIF, and John Hancock Life Insurance Company.
The portfolio, which is well diversified across power markets and turbine technologies, consists of assets located in seven states and is fully contracted under long-term power purchase agreements with a weighted average life of over 16 years. EDPR will retain a majority of the cash equity interests in the portfolio and will continue to act as the manager of all of the assets.
The transaction follows Fiera Axium’s acquisition of a 49% ownership interest of Wheat Field, a 97-MW operating project in Oregon from EDPR in November 2013.
“The addition of a stable, yielding portfolio of this caliber is an attractive development for our Limited Partners and a significant milestone for Fiera Axium as a core infrastructure investor in the United States. We are grateful to the exceptional management and operating teams at EDPR, and to our consortium members, lenders and counsel for working in such a collaborative fashion to execute the transaction,” said Paulo Arencibia, Vice President & Investment Director of Fiera Axium Infrastructure US Inc., manager of Fiera Axium Infrastructure US L.P.
“We are delighted to partner for the second time with EDPR, a world-class firm, in the ownership and operation of renewable generation assets. We are also thrilled to be partnering with consortium members that share our long-term investment horizon for core infrastructure assets,” said Stéphane Mailhot, President and COO of Fiera Axium Infrastructure US Inc.
In connection with the acquisition, Santander Bank N.A. and Prudential Capital Group have provided credit facilities to support the acquisition financing.
Norton Rose Fulbright US LLP acted as legal advisor to Fiera Axium’s consortium and Latham & Watkins LLP acted as legal advisor for the lenders.
Fiera Axium Infrastructure Inc.
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