TerraForm completes acquisition of distributed solar power plants

TerraForm Power has secured the acquisition of 77.6 MW of distributed generation solar power plants from the Capital Dynamics U.S. Solar Energy Fund.

The transaction will ensure around $21 million in unlevered Cash Available for Distribution (CAFD) to be provided next year, with immediate accretive to CAFD per share.

The power purchase agreements include 19 years deal with a weighted average credit rating of A3/A.

Meanwhile, TerraForm Power has increased the size of its Revolving Credit Facility to $215 million.

The acquisition is being funded through an increase of TerraForm Power’s current Term Loan Facility.

“The 39 high quality power plants we acquired with this transaction further our growth strategy and extend our leadership position in the fragmented distributed generation market place,” said Carlos Domenech, President and Chief Executive Officer of TerraForm Power.

The company has proved its ability to execute high-level transactions with significant returns, by completing previous acquisitions like Hudson Energy Solar, First Wind and SunEdison.

TerraForm acquired the operating portfolio of Hudson Energy, a subsidiary of Just Energy, effective from November 4.

So far a total of 101 projects, comprising 25.5 MWp of U.S. commercial and industrial assets have been added to company’s operating portfolio.

Sabeena Wahid
[email protected]