AltaGas has agreed to sell an approximately 55% stake in its 277 MW Northwest Hydro portfolio for about C$1.39 billion ($1.04 billion).

The buyer is the same joint venture between Axium Infrastructure and Manulife Financial Corp. that agreed to acquire a 35% stake in the portfolio for C$922 million ($700 million) earlier this year (PFR, 6/13).

AltaGas said the valuation of the 55% was "largely in line" with the earlier deal in its funding plan and outlook for 2019.

The company also announced that it intends to refinance the remainder of the $3 billion bridge loan it used to finance its $9 billion acquisition of WGL Holdings (PFR, 9/13) with a new C$1.2 billion ($900 million) revolving credit facility by the end of the year.

TD Securities, JP Morgan and RBC Capital Markets are AltaGas's financial advisers on the sale of the hydro portfolio stakes. 

AltaGas had already effectively spun off an approximately 10% stake in the portfolio by including it as part of the initial public offering of AltaGas Canada (PFR, 13/9).

The Northwest facilities are located on the Iskut River in the Tahltan First Nation, approximately 620 miles northwest of Vancouver.

The portfolio comprises the 195 MW Forrest Kerr facility, the 66 MW McLymont Creek facility and the 16 MW Volcano Creek facility, all of which have 60-year power purchase agreements with BC Hydro.

The company recently closed on the sale of a 50% stake in the 29 MW Busch Ranch I wind farm in Huerfano County, Colo., to Black Hills Electric Generation for $16 million (PFR, 12/12).

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