TerraForm Power has completed its acquisition of five power projects totalling 521MW of wind energy from Atlantic Power for approximately $350m.
According to the long-term power purchase agreement (PPA), Atlantic Power Transmission, a direct Atlantic Power subsidiary, will transfer the assets to TerraForm AP Acquisition, an indirect subsidiary of TerraForm.
The five projects under consideration are located across the US states of Idaho and Oklahoma.
The 124.5MW Goshen North (12.5%), 183MW Idaho Wind (27.6%), 120MW Meadow Creek (100%), 80MW Rockland wind farm (50%) and 298MW Canadian Hills (99%) facilities are the assets to be divested.
It is expected that the acquisition will be completed by the second quarter of 2015, however it still awaits regulatory approvals and customary closing conditions.
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Atlantic Power president and chief executive officer James Moore said: "Together with our board, we considered a wide range of options for asset divestitures over the last six months as well as options for refinancing the balance sheet without asset sales.
"In addition to completing the wind transaction, we are focused on executing the other elements of our business plan.
"We are evaluating the best use of proceeds to optimise our capital structure for the benefit of shareholders, continuing to implement significant reductions in our corporate general and administrative expenses beyond the level already targeted for 2015, and making ongoing investments in our fleet at attractive cash-on-cash returns."
TerraForm has secured a financing of approximately $515m to support