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* Pattern Energy Group Inc. is positioning itself for an ambitious expansion of its U.S. and international generating fleet. An expanded project acquisition and renewable energy development pipeline and enhanced access to growth capital are expected to drive generation to 5,000 MW by 2020 from roughly 2,700 MW as of December 2017.
* Pattern's growth strategy is focused on the acquisition of operational and shovel-ready projects primarily from its privately held development affiliates, Pattern Development 1.0 and Pattern Development 2.0, which have more than 10,000 MW of projects, available to Pattern through a right-of-first-offer, or ROFO agreement.
* To underwrite its development pipeline, Pattern in June 2017 closed on $1 billion in capital commitments to Pattern Development 2.0. Pattern's private equity sponsor, Riverstone Holdings, pledged to provide $724 million in capital raised from institutional investors, while Pattern will separately commit an initial $60 million for a 20% ownership stake in Pattern Development 2.0.
* Pattern management aims to deliver high single-digit to low double-digit growth in its cash available for distribution per share, laying a path for steady dividend growth. Based on management's 2017 guidance, cash available for distribution has grown by 258% since the company's IPO, while owned capacity has grown by more than 160%.
* Operations are focused in the U.S., Canada and Chile, though Pattern management expects that Japan and Mexico will play a growing role in the company's investment strategy.
Pattern Energy Group was formed in 2012 and taken public in late 2013 in an IPO. Starting with a mix of operational and under-construction wind projects comprising 1,041 MW, Pattern's portfolio has since grown to just over 2,700 MW of geographically diverse assets as of December 2017 through acquisitions from a privately held renewable energy and transmission development affiliate and from other third parties. As of Sept. 30, 2017, 92% of the fleet was contracted to largely investment-grade off-takers with an average power purchase agreement life of more than 14 years.
To facilitate the growth of cash available for distribution and dividend growth, Pattern's growth strategy envisions the acquisition of operational and shovel-ready projects from its development affiliates, Pattern Development 1.0 and Pattern Development 2.0. The Pattern Development companies collectively have more than 10,000 MW of development projects globally, of which Pattern has a ROFO to acquire. Pattern Development 2.0 was created in December 2016 via the acquisition of early and midstage renewable energy development assets from Pattern Development 1.0, and the purpose of the transaction was to enable additional long-term capital raises by Pattern Development 2.0 to support ongoing development pipeline growth.
Marking a new phase in its growth strategy, Pattern in June 2017 closed on $1 billion in capital commitments to Pattern Development 2.0. Pattern's private equity sponsor, Riverstone Holdings, pledged to provide $724 million in capital raised from institutional investors, including Canadian pension fund Public Sector Pension Investment Board, which secured the right to co-invest up to $500 million in projects acquired by Pattern under its ROFO agreement with the Pattern Development companies.
Management expects Pattern Development 2.0 will eventually serve as Pattern's sole development affiliate as Pattern Development 1.0's assets diminish through the sell-down to Pattern through the ROFO process.