TerraForm Power and SunEdison have announced that TerraForm Power has signed a definitive agreement to acquire net ownership of 930MW of wind power plants from Invenergy Wind LLC.
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$ 2.0 billion in aggregate consideration. Average unlevered CAFD of the acquired portfolio is anticipated to be US$ 141 million annually over the next 10 years, generating a levered cash-on-cash return of approximately 8.4 per cent. The acquired portfolio is comprised of seven contracted wind farms located in the USA and Canada. The assets have a weighted average remaining contract life of 19 years and an average counterparty credit rating of AA. Invenergy will retain a 9.9 per cent stake in the U.S. assets and will provide certain operation and maintenance services for these power plants. The companies anticipate closing by the fourth quarter of 2015.