Pattern Energy starts roadshow for $700 million eight-year green bond offer

By Paul A. Harris

Portland, Ore., July 13 – Pattern Energy Operations LP and Pattern Energy Operations Inc. began marketing a $700 million offering of eight-year senior green notes (expected ratings Ba3/BB-) on Monday, according to market sources.

Initial talk has the notes coming to yield in the 5% area, a trader said.

The deal is expected to price Tuesday or Wednesday.

Lead active bookrunner RBC Capital Markets Corp. will bill and deliver. BMO Capital Markets Corp. and Citigroup Global Markets Inc. are joint active bookrunners. BofA Securities Inc. and HSBC Securities (USA) Inc. are joint bookrunners.

Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, KeyBanc Capital Markets Inc., SMBC Nikko Securities America Inc., MUFG, Wells Fargo Securities LLC and SG Americas Securities LLC are co-managers.

The Rule 144A for life and Regulation S notes become callable after three years at par plus 75% of the coupon. The issue features a 101% poison put.

The San Francisco-based developer, owner and operator of utility scale wind and solar power facilities plans to use the proceeds to redeem its existing 2024 notes and repay its term loan A, with any remaining proceeds to be used for new investments in eligible green projects.

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