trending Market Intelligence /marketintelligence/en/news-insights/trending/dqsqx87tkrpggotjfjognq2 content esgSubNav
In This List

Innergex closes C$1.1B acquisition of Alterra Power

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


Innergex closes C$1.1B acquisition of Alterra Power

Innergex Renewable Energy Inc. completed its acquisition of Alterra Power Corp. for C$1.1 billion, including the assumption of Alterra's debt.

This also completes a five-year, C$150 million financing from the Caisse de dépôt et placement du Québec for the cash portion of the deal, according to a Feb. 6 news release.

"This transaction gives us a stronger platform for solid, long-term growth in the United States, the world's second-largest growth market for renewables," Innergex President and CEO Michel Letellier said.

The acquisition adds 485 MW of renewable energy assets in operation and under construction and more than 5,000 MW of prospective projects in preliminary stages or in progress to Innergex's portfolio.

Innergex's total capacity now stands at 1,609 MW. The company expects that its net installed capacity will reach over 2,000 MW from a resource mix of hydro, wind, solar and geothermal projects in Canada, France, Iceland and the U.S. by 2020.

Under the deal, Alterra shareholders had the option to receive either C$8.25 in cash or 0.5563 Innergex common share for each Alterra share, resulting in an aggregate consideration of approximately 25% in cash and 75% in Innergex shares.

But since the number of those who opted for the cash alternative or have not made an election exceeded the maximum cash consideration, the total consideration was subject to proration and resulted to about 37.8% in cash and 62.2% in Innergex common shares.

The Innergex common shares issuable to Alterra shareholders represent an ownership of approximately 18% of the combined corporation. Alterra shares are expected to be delisted from the Toronto Stock Exchange at the close of market on Feb. 7.

With the deal closing, Alterra Executive Chairman Ross Beaty also joins the Innergex board of directors.

Along with this announcement, Innergex said its revolving credit facilities were increased by C$225 million to C$700 million, enabling it to pursue development of its asset portfolio and construction of its projects. The revolving credit facilities mature December 2022.

BMO Capital Markets, National Bank Financial Inc. and TD Securities were co-lead arrangers and joint book managers for these revolving credit facilities.