US-based NRG Energy has agreed to sell parts of its wind business to its operating vehicle NRG Yield for a $210m cash consideration, in order to revive its financial position.
The firms have entered into an agreement where NRG Yield will acquire a 75% equity interest in the wind project portfolio, comprising assets NRG purchased from Edison Mission Energy (EME) in April 2014.
The EME offering covers multiple wind energy assets totalling a 814MW capacity.
It includes the 54MW Elkhorn Ridge facility in Bloomfield, Nebraska; the 90MW San Juan Mesa in Elida, New Mexico; the 161MW Wildorado in Vega, Texas; the 21MW Crosswinds in Ayrshire, Iowa; the 29MW Forward facility and the 38MW Lookout facility in Berlin, Pennsylvania.
Also included are the 15MW Hardin in Jefferson, Iowa; the 20MW Odin facility in Minnesota; the 95MW Sleeping Bear in Woodward, Oklahoma; the 19MW Spanish Fork facility in Spanish Fork, Utah; the 150MW Goat Wind facility located in Sterling City, Texas; and the 122MW Elbow Creek farm in Howard County, Texas.
The deal, which is subject to working capital adjustments, has provision for around $145m of debt and $97m of tax equity.
The firms expect to close the transaction by the end of the year, following third-party approvals and fulfilment of other closing conditions.
The transaction indicates the firm’s attempt to recover its struggling finances and stock value, which has depreciated to around $19.17 as of 17 September, from a high of about $38 per share in June 2014, reports FuelFix.com.
Image: View of several wind turbines. Photo: courtesy of Tanatat / FreeDigitalPhotos.net.
