EDP Enters U.S. Market with Acquisition of Horizon Wind Energy

The combined entity resulting from the acquisition will be a major global renewables player, with more than 3,800 megawatts (MW) of wind power generation in operation by the end of 2007.

The transaction values the equity of Horizon at $2.15 billion. Horizon's net financial debt as of December 31, 2006 was $180 million. The total cash consideration to be paid at the closing of the transaction will be adjusted for capital expenditures, which are currently estimated to amount to an additional $600 million. Citigroup acted as financial adviser to EDP in the transaction, which is due to close by the end of the second quarter 2007.

Founded in 1999, Horizon owns 559 MW of operating wind projects and has 997 MW of projects under construction, for an expected operational capacity by the end of 2007 of 1,556 gross MW (1,324 net MW). Horizon also has a pipeline of projects in several stages of development in 15 different states across the U.S., with combined aggregate generating capacity exceeding 9,000 MW.

The assets of Horizon represent a high quality portfolio, namely through a presence in highly liquid and diversified energy markets, a strong footprint in the main Renewable Portfolio Standards (RPS) states, and high wind resource sites -- the average load factor for the projects in operation and under construction is 37.5%.