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Pattern Energy may draw on revolver, issue hybrids for acquisitions
By Devika Patel
Knoxville, Tenn., Nov. 5 – Pattern Energy Group Inc. plans to draw on the $213 million of availability under its revolving credit facility and the proceeds garnered from a debt refinancing in Japan to fund potential asset acquisitions.
“[We plan to conduct] a Japanese refinancing,” chief financial officer Michael Lyon said on the company’s third quarter ended Sept. 30 earnings conference call on Monday.
“That will depend on both the amount of Japanese revenue or cash flow that we put into a transaction and the cost associated with that refinancing, which we think in the Japanese market will be very low by U.S. standards.
“That [refinancing] can provide a really significant increase in the cash available to buy assets for accretive returns,” he said.
As of Sept. 30, the company had $832 million of available liquidity, including approximately $126 million of unrestricted cash on hand, $20 million of restricted cash and $220 million of availability under the company’s revolver.
The company may issue hybrid securities to boost liquidity.
“We’re looking at things like the preferreds, convertibles and all that sort of stuff as ways to monetize [for] maybe a little bit more liquidity,” Lyon said.
As of Nov. 1, the company had $213 million of availability under its revolver, and it plans to draw on this to help finance asset acquisitions.
“As we acquire new assets, we intend to draw on the revolver to fund those transactions,” Lyon said.
Adjusted EBITDA increased 45% to $79.5 million for the third quarter of 2018, compared to $54.7 million for the same period last year.
The independent power company is based in San Francisco.
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