Finavera Wind Energy Inc. (TSX: FVR) signed an agreement with Pattern Renewable Holdings Canada ULC, a subsidiary of Pattern Energy Group LP, for the sale of the company's 300 MW British Columbia wind project portfolio for approximately C$40 million ($40.5 million) subject to shareholder and regulatory approvals.
Under the terms of the agreement, Pattern has agreed to refinance up to C$9 million ($9.1 million) of corporate debt, fund certain development costs going forward and provide a further debt facility to the company at a rate of 10 percent, all of which will be applied against the purchase price at closing of the acquisition of the projects.
Post-acquisition, Pattern has also committed to development spending on the near term projects. Approximately C$11 million ($11.1 million) will be paid to Finavera upon shareholder approval and upon completion of the acquisition of the project companies, with the balance of the C$40 million ($40.5 million) being proportionally payable upon all projects obtaining construction financing and moving into the construction phase.
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