Invenergy-Led Consortium To Acquire American Electric Power's Unregulated Renewables Portfolio

Invenergy announced IRG Acquisition Holdings entered into an agreement with American Electric Power (AEP).

Details: As part of the agreement, IRG Acquisition Holdings (IRGAH) will acquire AEP’s 1,365-megawatt (MW) unregulated, contracted renewables portfolio for $1.5B enterprise value including project debt.

Context: Invenergy is a leading privately held developer, owner, and operator of sustainable energy solutions. 

The product of the firm’s partnership between global investment group CDPQ and funds managed by Blackstone Inc (NYSE: BX) Infrastructure is IRG Acquisition Holdings (IRGAH) which just made its biggest-ever acquisition for American-led Invenergy. Included in the acquisition are 14 projects in 11 states comprised of 1,200 MW of wind generation and 165 MW of solar projects.

The power generated by these projects is contracted under long-term agreements with various utilities, corporations, and municipalities.

Impact: “Invenergy is proud to bring our industry-leading development, financial, and operating expertise to this quality renewable operating portfolio,” said Jim Murphy, President and Corporate Business Leader at Invenergy. “Our longstanding record of working with AEP, familiarity with the portfolio projects, and the strength and cohesiveness of our investor consortium led to this significant agreement.”

Bonus: Financing was secured from Banco Santander S.A. (NYSE: SAN), Coöperatieve Rabobank U.A., and Natixis CIB. Bank of America Securities (NYSE: BAC) served as a financial advisor to IRGAH for the acquisition.