On October 3, 2022, Algonquin Power & Utilities Corp. (AQN) disclosed it has sold ownership interests in several wind projects in the U.S. and Canada to InfraRed Capital Partners, a part of SLC Management under Sun Life Financial Inc. This deal, termed as an asset recycling transaction, includes a 49% stake in three U.S. wind facilities with a total of 551 MW capacity, and an 80% stake in a 175 MW Canadian wind facility.

The transaction yielded total proceeds of approximately $277 million for the U.S. facilities and around C$107 million for Canada's Blue Hill Wind Facility, subject to standard closing adjustments. The U.S. facilities involved are the Odell Wind Facility in Minnesota, Deerfield in Michigan, and Sugar Creek in Illinois, while the Canadian facility is located in Saskatchewan. AQN will continue to manage day-to-day operations and maintenance of these facilities.

This transaction is AQN’s initial step in its asset recycling strategy, which aims to fund its announced $12.4 billion capital plan through 2026, emphasizing renewable energy growth. Arun Banskota, President and CEO of AQN, highlighted the partnership with InfraRed as aligning with AQN’s renewable strategy and financial goals. The deal is set to finalize in Q4 2022, pending regulatory approvals.

CIBC Capital Markets served as the exclusive financial advisor for AQN in this transaction.