TerraForm Power, a unit under US-based renewable energy company SunEdison, has signed a definitive agreement with Invenergy Wind to acquire a portfolio of wind power assets across North America for $2bn.
The acquisition includes seven contracted wind farms in the US and Canada totalling 930MW. All the assets have long-term power sale contracts.
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The deal, which is expected to be closed in the fourth quarter, allows Invenergy to retain a 9.9% stake in the US assets.
Invenergy will also be responsible for providing certain operation and maintenance services for those wind farms.
Terraform intends to be the direct owner for 460MW of the acquired power assets.
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A new warehouse facility sponsored by SunEdison and third-party equity investors is expected to buy the remaining 470MW, which is to be taken over by Terraform in the future.
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By GlobalDataTerraForm Power chief executive officer Carlos Domenech said: "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."
SunEdison chief executive officer and TerraForm Power chairman Ahmad Chatila said: "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.
"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)."
Invenergy chief financial officer and operating business group president Jim Murphy said: "As an independent, privately-held company, this transaction is consistent with how we finance growth in our capital-intensive industry and reflects the strength of Invenergy’s business model."
Image: Terraform acquires seven wind projects totaling 930MW from Invenergy. Photo: courtesy ofmeepoohfoto / FreeDigitalPhotos.net.
