Innergex Renewable has reached an agreement with Irradiant Partners, LP for the sale of minority interests in three of its Texas facilities. This transaction, valued at CAD 257 million, is designed to reduce the risks associated with Innergex’s Texas assets and strengthen its balance sheet.
Strategic Partnership and Financial Impact
Innergex sells 49.9% of the Phoebe and Griffin Trail facilities and 22.2% of Foard City to Irradiant Partners, a Los Angeles-based investment manager. The CAD 257 million obtained will be used primarily to pay down debt on the Foard City and Phoebe projects, and to withdraw the Phoebe energy hedging contract. The remaining funds will be used for general corporate purposes. This partnership enables Innergex to maintain operational control of its assets while optimizing their performance and improving their risk profile.
Transaction structure and asset management
The transaction includes the sale of specific holdings: 49.9% in Phoebe (250 MW solar facility) and Griffin Trail (225.6 MW wind farm), and 22.2% in Foard City (350.3 MW wind farm). Innergex will continue to manage operations and keep its professional teams on site. The aim is to stabilize the revenue structure of the facilities, in particular Foard City and Griffin Trail, which will see no change in their revenue structure.
Growth prospects and risk management
Michel Letellier, CEO of Innergex, points out that this partnership with Irradiant allows Innergex to leverage its operating assets in Texas while moving away from the energy hedging model. This strategy aims to improve the company’s overall risk profile and optimize the performance of its assets. In fact, the transaction enables Innergex to strengthen and deleverage its balance sheet, a crucial step for the company’s future growth. This contract consolidatesInnergex ‘s investments in renewable energy projects.
Impact on the Innergex portfolio
Operating mainly in Canada, the United States, France and Chile, Innergex manages a diversified portfolio of hydroelectric, wind, solar and energy storage facilities. This transaction represents a strategic opportunity for Innergex to enhance the quality and resilience of its energy portfolio while generating sustainable cash flows and offering attractive returns to its shareholders. The facilities involved in this transaction are located in various Texas counties: Foard City in Foard County, Griffin Trail in Knox and Baylor Counties, and Phoebe in Winkler County. These sites, with a total installed capacity of over 826 MW, represent a significant portion of Innergex’s portfolio in the United States.
