Infigen Completes Sale of US Wind Business
29 October 2015
Infigen Energy (ASX: IFN) advises that it has completed the sale of its US wind business to a portfolio company affiliated with ArcLight Capital Partners, LLC for US$274.4 million.
Proceeds from the sale of Infigen’s Class B interests of US$232.8 million will be applied approximately as follows:
- US$186 million will be used to repay US$138 million and EUR 43 million debt outstanding under Infigen’s Global Facility
- US$27 million will be used to close out interest rate derivative liabilities
- US$10 million will be used to pay transaction costs and US federal and state taxes
- US$10 million will be held in escrow pending the resolution of certain operational matters
Proceeds from the sale of Infigen’s Class A interests of US$41.6 million will be applied approximately as follows:
- US$40.6 million will be added to the cash that Infigen holds in entities outside the Global Facility borrower group
- US$1 million will be used to pay tax and transaction costs
Infigen Energy’s Managing Director, Miles George, said, “This is a significant milestone for Infigen. We are now a solely Australia focused renewable energy company in a market with a favourable regulatory structure.”
Mr George wished Infigen’s US based employees every success for the future of their business under new ownership and thanked them for their efforts in achieving this outcome that should see both businesses thrive in their respective markets.