The Acquisition will increase the Company's ownership interest in the Rockland project to a 50% managing member interest from 30%, and add a 12.5% interest in Ridgeline's 125 MW Goshen North project. As part of the acquisition of Ridgeline, the Company will also acquire 100% of Meadow Creek, a 120 MW wind project currently under construction in Idaho, with a commercial operation date ("COD") expected in December 2012.
As part of the Acquisition, Atlantic Power will integrate Ridgeline's team of over 30 employees, which has a broad set of competencies essential for the successful identification, resource assessment, development (including permitting), construction and operation of large-scale renewable power projects. Ridgeline was responsible for developing Idaho's first utility scale wind project and has successfully developed three additional wind projects totaling 325 MW, including Rockland and Goshen North. As a part of Atlantic Power, this team will also assist the Company in its assessment and pursuit of other renewable acquisitions and in managing Atlantic Power's growing renewable energy portfolio.
The total cost of the Acquisition will be approximately $88 million, subject to working capital adjustments. The Company currently intends to fund the acquisition from the net proceeds of a planned issuance of convertible debt.
The Acquisition is subject to approval from the Federal Energy Regulatory Commission as well as other regulatory agencies. In addition to customary closing conditions, the Acquisition closing is subject to the Company obtaining financing and the Meadow Creek project achieving certain commercial operating milestones. The Acquisition is expected to close on or before December 31, 2012.For additional information, see the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on November 16, 2012. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful.