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Davis Polk Advises Pattern Energy’s Conflicts Committee on Strategic Initiatives for Expansion of Growth and Capital Opportunities

Davis Polk is advising the Conflicts Committee of the board of directors of Pattern Energy Group Inc. in connection with a series of strategic initiatives to increase Pattern Energy’s long-term growth outlook and to enhance its access to capital, including (i) a minority investment by Pattern Energy in Pattern Energy Group 2 LP (together with Pattern Energy Group 1 LP, Pattern Development) in connection with a major increase in capital committed to Pattern Development from other investors and the expansion of Pattern Development’s development pipeline, (ii) the acquisition by PSP Investments of 8.7 million shares (~9.9%) of Pattern Energy stock from Pattern Development and Pattern Energy’s partnership with PSP Investments pursuant to which PSP Investments will co-invest $500 million in projects acquired by Pattern Energy from Pattern Development, and (iii) Pattern Energy’s $65 million acquisition of a 51% interest in the 179 MW Meikle project in British Columbia, Canada, from Pattern Development, $40 million acquisition of a 51% interest in the 143 MW Mont Sainte-Marguerite project south of Québec City, Canada, from Pattern Development, and $59 million sale of 49% of the Class B interests in the 182 MW Panhandle 2 project in Carson County, Texas, to PSP Investments, and, in each case, the related co-investment by PSP Investments in such projects.

Pattern Energy is an independent power company listed on the NASDAQ Global Select Market and Toronto Stock Exchange. Pattern Energy has a portfolio of 20 wind power facilities, including the two projects it has agreed to acquire, with a total owned interest of 2,736 MW in the United States, Canada and Chile.

The Davis Polk corporate team includes partner John H. Butler and associates Abraham Einhorn and Robert F. Smith. Partner Po Sit is providing tax advice. Partners Richard D. Truesdell Jr. and Shane Tintle are providing capital markets advice. Associate Hilary Dengel is providing credit advice. Partner Kyoko Takahashi Lin and counsel Cynthia Akard are providing executive compensation advice. Partner John B. Reynolds III is providing CFIUS-related advice. Members of the Davis Polk team are based in the New York, Northern California and Washington DC offices.