Pattern Energy plans $950 million of debt for buyout by CPPIB

By Sara Rosenberg

New York, Nov. 4 – Pattern Energy Group Inc. received a commitment for $950 million of debt financing to help fund its acquisition by Canada Pension Plan Investment Board, according to an 8-K filed with the Securities and Exchange Commission on Monday.

BMO Capital Markets Corp., Citigroup Global Markets Inc. and RBC Capital Markets provided the debt commitment.

Other funds for the transaction will come from up to $2.64 billion of equity.

Under the agreement, Pattern Energy is being bought for $26.75 per share, implying an enterprise value of about $6.1 billion, including net debt.

Canada Pension Plan Investment Board and Riverstone Holdings LLC have concurrently entered into an agreement to, at or following the completion of the buyout, combine Pattern Energy and Pattern Energy Group Holdings 2 LP under common ownership, bringing together the operating assets of Pattern Energy with the development projects and capabilities of Pattern Development.

Closing is expected by the second quarter of 2020, subject to Pattern Energy shareholder approval, receipt of regulatory approvals, and other customary conditions. The Pattern Energy transaction is not contingent upon the completion of the Pattern Development transaction.

Pattern Energy is a San Francisco-based power company. Pattern Development is a San Francisco-based developer of renewable energy and transmission assets.

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