American Electrical Energy (AEP) has agreed to promote its 50% curiosity in New Mexico Renewable Improvement (NMRD) to Exus North America.
AEP and PNM Sources, which additionally owns 50% of NMRD, plan to promote the portfolio of 15 photo voltaic initiatives totaling 625 MW to Exus for roughly $230 million, topic to true-up changes at shut.
AEP’s share of the sale is roughly $115 million and the corporate expects to obtain about $104 million in money after tax, transaction charges and different customary changes. The sale is predicted to shut in February 2024 and won’t have a fabric impression on monetary outcomes.
“This sale is one other step ahead on our path to simplify our enterprise and deal with investing in our core regulated operations, and we proceed to execute on our technique to de-risk the corporate,” says AEP’s Julie Sloat. “Earlier this yr, we accomplished the $1.5 billion sale of different elements of our contracted renewables enterprise. The proceeds from these gross sales are strengthening our steadiness sheet and supporting our continued efforts to create an vitality system that advantages prospects by offering protected, dependable and reasonably priced electrical energy.”
The NMRD portfolio contains 9 working photo voltaic developments totaling 185 MW and 6 initiatives below improvement with an estimated output of 440 MW, says the corporate.
AEP launched the sale course of for NMRD in June. KeyBanc Capital Markets is serving as monetary advisor and Foley & Lardner LLP is serving as authorized counsel to AEP and PNM Sources.
