Financing

Pattern uses a combination of debt and equity to finance the wind and transmission projects that are at the core of its growth strategy. In developing a particular financing strategy behind any project, we take great care to understand the financial, energy markets, operating, and governance risks involved with each project and how each project fits into our overall business to assure that those risks are well managed and commensurate with financial and governance expectations.

Pattern is well-capitalized and financially strong and protecting that strength plays an essential role in all financing decisions that we make. With over $800 million of equity committed to our business, no corporate debt and significant cash reserves, we have the financial ability to execute our business objectives for many years to come. In our first nine months as an independent company, we successfully raised non-recourse debt for each of our projects from 13 U.S. and international banks.

Our management team has over 20 years of experience in financing wind and other power generation projects, through all phases of the business cycle and in both strong and weak economies. Our prudent approach has earned us one of the highest success rates in the industry for securing project financing and delivering results within budget. We continuously perform detailed analyses of the constantly changing financial markets to find optimized financial solutions tailored to our business and our projects. As the economy has shown recently, debt markets can change quickly and significantly. By maintaining up-to-date analyses of the state of the financial markets, we are able to better take into account global market shifts.

• We use proprietary financial models to gain a deeper understanding of a project's risks and the appropriate capital structure for a project. By understanding those risks, we can evaluate a range of options and take steps to minimize risks, whether it is adjusting a project's cash reserves or debt, or evaluating whether another party is better suited than Pattern to take the risk.
• We have extensive experience working closely with outside tax experts to determine the most efficient use of renewable energy tax benefits and provide additional income to our projects. This is particularly important because U.S. tax benefits often change as federal policy changes, requiring regular analysis and structural modifications as needed to ensure we are maximizing our projects' return.
• Once financing is secured and the project is under construction or operational, we closely track financial performance against expectations. We systematically review performance and irregularities and integrate what we learn into our future development and construction. This careful analysis further strengthens the body of knowledge we have accumulated at Pattern and better prepares us for the future.