The consideration will be paid by Boralex from its recently enhanced revolving credit facility. Boralex anticipates an increase in discretionary cash flow per share following the transaction.
In the medium term, the integration of Kallista's assets should enable development and operations team synergies. In the longer term, given Boralex's presence in France for nearly 20 years, the number of development projects completed or in the process of completion, and its dynamic team, Boralex will have the strength it needs to exert greater influence with the various stakeholders and take full advantage of its leadership role.
Boralex President and CEO Patrick Lemaire applauded the deal: "This transaction is very strategic and beneficial for Boralex and will strengthen our position as France's largest independent producer of onshore wind power and allow us to take full advantage of our unique and integrated model as developer, prime contractor and operator of our projects. Boralex will enjoy a number of operational synergies and significantly improve its growth prospects in light of the very ambitious renewable energy development goals set by the French government."
"Since 2003, Boralex has had a pioneering vision in France developing its wind power operations," said Patrick Decostre, Vice-President and General Manager of Boralex Europe. "The major acquisition announced today is a hallmark of steady, well-controlled growth. It shows that with the agility of a company on a human scale like ours, along with our financial strength, we have become a leading player in the current market consolidation as France's largest independent producer of onshore wind power."
Each of the projects under construction or under development may benefit either from a known and predictable rate under an existing feed-in premium scheme or, once all licences are obtained, be submitted under the open-window scheme or future requests for proposals.
The transaction is expected to close in or around late June 2018, once regulatory approvals and other customary closing conditions have been met. An adjustment mechanism has been provided to confirm the consideration payable at closing.
Summary of projects acquired
The following map shows the locations of the projects acquired and Boralex's geographic coverage in France once the transaction is completed.
With the portfolio of acquired projects, Boralex's new installed capacity will be 1,619 MW, including nearly 800 MW in France, representing an increase of over 11% worldwide. Considering this announcement and the projects already under development in France and the United Kingdom, Boralex will have a portfolio of potential projects totalling approximately 1,000 MW in Europe alone.