Innergex sells minority interests in Texas renewable energy portfolio to Irradiant Partners

Innergex Renewable Energy Inc., listed on the Toronto Stock Exchange under the ticker INE, has announced a pivotal partnership with Los Angeles-based investment manager, Irradiant Partners, LP. This collaboration involves a transaction where Innergex will divest minority stakes in its 826 MW renewable energy portfolio located in Texas for a total equity consideration of US$188 million (approximately CAN$257 million), including adjustments for working capital.

The deal will see Innergex relinquish 49.9% of its interests in the Phoebe and Griffin Trail facilities and 22.2% of the Foard City facility. Michel Letellier, President and CEO of Innergex, expressed enthusiasm about the partnership, highlighting its strategic importance: “We are proud to partner with Irradiant to de-risk and enhance our Texas portfolio. This new structure will enable us to improve our overall risk profile and optimize the performance of our assets.”

The proceeds from the transaction are earmarked primarily for repaying the existing project debt at Foard City and Phoebe and for settling the power hedge offtake contract at Phoebe, with any remaining funds slated for general corporate purposes.

Transaction Highlights:

– Investment Size: US$188 million (CAN$257 million) from Irradiant, a firm managing over US$12 billion (CAN$16 billion) in assets.

– Asset Distribution: Sale of 49.9% of Phoebe and Griffin Trail and 22.2% of Foard City.

– Operational Continuity: Innergex retains management of the operations with its existing dedicated teams.

About the Assets:

– Foard City Wind: 350.3 MW capacity, operational since 2019, located in Foard County.

– Griffin Trail Wind: 225.6 MW capacity, operational since 2021, located in Knox and Baylor Counties.

– Phoebe Solar: 250 MW capacity, operational since 2019, located in Winkler County.

The strategic sale of these minority interests by Innergex is a significant move in the renewable energy sector, showcasing a trend towards leveraging financial partnerships to scale operations and enhance financial stability without relinquishing full operational control. This could serve as a model for other companies in the renewable sector aiming to balance growth with financial health.