TerraForm Power in US$2 Billion Deal to Acquire Wind Projects From Invenergy

TerraForm Power Inc.  has signed an agreement to acquire net ownership of 930 megawatts of wind power plants from Invenergy Wind for US$2 billion.

Under the agreement, TerraForm Power intends to acquire net ownership of 460MW of the wind power plants from Invenergy with the remaining 470MW to be acquired by a new warehouse facility, for a combined US$2 billion in aggregate consideration.

The acquired portfolio consists of seven contracted wind farms located in the US and Canada. The assets have a weighted average remaining contract life of 19 years. Invenergy will retain a 9.9 percent stake in the U.S. assets and will provide certain operation and maintenance services for these power plants.

TerraForm expects to finance the direct acquisition of the 460MW through a combination of cash on hand and new bond financing. TerraForm Power will also assume approximately US$450 million in non-recourse project debt.

“TerraForm Power continues to transform the energy landscape with our acquisition of Invenergy’s wind power portfolio,” said Carlos Domenech, TerraForm Power’s chief executive officer. “This transaction is expected to be immediately accretive to our shareholders, extend the visibility of our growth trajectory and unlock significant value as we aggregate a highly fragmented industry. Our ongoing partnership with Invenergy, the country’s leading independent wind owner and developer, provides further opportunities for collaboration, asset drop downs and dividend growth.”

“TerraForm Power’s acquisition of the Invenergy wind plants leverages the power of SunEdison’s platform which was enhanced with our acquisition of First Wind in January of 2015,” said Ahmad Chatila, SunEdison chief executive officer and TerraForm Power chairman.  “The Invenergy transaction creates significant value for our shareholders through the accretion in our TerraForm Power ownership and the acceleration of our Incentive Distribution Rights (IDRs). Together with TerraForm Power, SunEdison’s development platform will change how energy is generated, distributed and owned around the world.”

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