Clean energy project developer TerraForm Power Inc. has acquired five operating wind project with 521 megawatts of capacity from Atlantic Power for US$350 million.
The projects are located in high wind areas of Oklahoma and Idaho, have long-term power-purchase agreements with have a weighted-average remaining life of 18 years. The power plants have US$165 million of project debt that the company intends to retire, and approximately US$110 million proportional share of project debt that will remain outstanding.
The portfolio is expected to generate average annual adjusted EBITDA of US$56 million and average annual cash available for distribution of US$44 million over the next 10 years. The transaction is expected to close in the second quarter of 2015, subject to regulatory approvals and customary closing conditions.
TerraForm said it has secured fully committed bridge financing of up to US$515 million to support the transaction. The company intends to fund the acquisition with a drop down warehouse facility in partnership with third party equity investors and its sponsor SunEdison.