Capital Executes Texas Wind Acquisition
Capital Executes Texas Wind Acquisition
Company expects to assume operations manager role of the 100.5MW Buckthorn wind farm in early 2021
Capital Power has completed the purchase of a 100MW wind farm in Texas from John Laing Group.
The 100.5MW Buckthorn wind farm is located in Erath County, approximately 60 miles south of Dallas, and has been in operation since January 2018.
The equity purchase price will be in the range of $60m to $69m, pending the realisation of future market performance.
As part of the deal Capital Power has negotiated a tax equity partnership with a tax equity balance of $68m.
The acquisition of Buckthorn, initially announced on 16 March 2020, was 100% debt financed.
The wind farm features 29 Vestas turbines and has a service and maintenance agreement with the Danish manufacturer.
Rubicon acted as the exclusive sell-side advisor to John Laing Group in the sale of the wind farm.
Rubicon managing director Jatin Gupta said: “We are delighted to have had the opportunity to work with the John Laing Group and the Capital Power Group in executing this landmark transaction.
“Rubicon ran a global process and leveraged its deep expertise in the wind energy sector to effectively position Buckthorn for the sale in the crowded Texas marketplace.”
Capital Power expects to assume the operations manager role in early 2021 to replace the current third party operations and maintenance services agreement.
On 16 March Capital Power’s 150MW Cardinal Point Wind project began commercial operations and subsequently the company received $157m in net tax equity financing on 26 March from two US financial institutions in exchange for Class A interests of a subsidiary of the company.