Axium Infrastructure, together with Nova Scotia Pension Services, acquired a 49 percent interest in a 246-MW wind facility portfolio from Capital Power. The deal, valued at $340 million, included the Quality Wind facility in British Columbia and the Port Dover and Nanticoke Wind facility in Ontario.
The two wind facilities are fully contracted with investment-grade counterparties and have a remaining weighted average contract life of around 11 years. Capital Power will continue to manage and operate the assets on behalf of the newly formed partnership under a long-term asset-management agreement. Consistent with its strategy, the transaction represents the crystallization of a levered equity return in excess of Capital Power’s capital allocation thresholds and enhances its financial flexibility.
Davies Ward Phillips & Vineberg LLP represented Axium Infrastructure in connection with the acquisition. The team included Anthony Spadaro, Nicholas Williams and Jamieson King (Power/Corporate M&A, Financing); Sarah Powell and Robyn Barabash (Environmental/Indigenous); Marc André Gaudreau-Duval and Xavier Plomteaux (Tax); Charles Tingley (Competition); and Ioana Hancas (Real Estate).
Dentons Canada LLP acted as counsel to Capital Power with a team led by Vivek Bakshi and Jamie Thomas and included Kurtis Parcells, Jesse Standing, Esme Cragg, Wilfred Chan, Brian Kearl, Paige Donnelly and Sandy Walker.