TerraForm Power, SunEdison’s primary yieldco, has announced the acquisition of 930 MW of wind power plants from energy company Invenergy Wind.
TerraForm Power was set up last year with the sole intention of owning and operating clean energy power generation assets acquired from its parent company, SunEdison, or other acquisitions. Fulfilling that purpose, TerraForm Power announced on Wednesday that it had secured the acquisition of 832 MW of wind power plants from Invenergy Wind, the United States’ largest independent wind project owner. In addition, the acquisition of a further 98 MW of power plants is expected to be closed in April of next year.
“The addition of these high-quality wind power plants further strengthens the TerraForm Power fleet,” said Brian Wuebbels, TerraForm Power’s chief executive officer. “It increases our fleet size by 48%, from 1.9 GW to 2.8 GW. On a pro forma basis, it extends our average remaining contract life from 16 years to 17 years. It improves the average counterparty credit rating from A- to A, and it increases our North America focus with the US and Canada now representing 83% of the total fleet, up from 75% at the end of the third quarter.”
The total 930 MW is made up of 7 separate wind farms, with 832 MW currently operational and the April-98 MW set to be operational in April. 852 MW of the total is located in the United States, in Nebraska, Illinois, and Texas, with a further 78 MW in Ontario, Canada.
The acquisition was first announced back in July at a price tag of $2 billion. Specifically, the total buyout is rated at $1,962 million, and was partially supported by new financing supplied by a syndicate of banks in the form of a $500 million non-recourse term loan.